Microsoft, Nadella face third AI copyright shareholder derivative suit

Katelyn Gray filed a shareholder derivative suit against Satya Nadella, other Microsoft directors and officers, and Microsoft itself on Sept. 9 in the Western District of Washington, per Chat GPT Is Eating the World. It’s the third such suit against Microsoft’s board, joining Anderson v. Microsoft and Vladimir Gusinsky Revocable Trust v. Nadella before Judge Rothstein, and is expected to be consolidated into In re Microsoft Corporation Stockholder Derivative Litigation. The theory — which the blog says it coined as “copyright shareholder derivative” litigation — argues Microsoft’s directors and officers approved or were exposed to copyright infringement risk and misrepresented that risk to shareholders.