Good morning. The Securities and Exchange Commission has fined two investment advisers for allegedly making false statements about their use of artificial-intelligence technology, following through on its warning to go after businesses involved in so-called “AI washing.”

Delphia (USA) and Global Predictions settled with the SEC Monday and agreed to pay a total of $400,000 in civil penalties, without admitting or denying the SEC’s allegations. Delphia agreed to pay a $225,000 civil penalty, while Global Predictions agreed to pay $175,000.

• What is it? AI washing, an informal term that describes businesses’ making unfounded AI claims to the public, has emerged as a recent target of the agency’s enforcement efforts. The term echoes the greenwashing phenomena, which refers to companies misleading the public that their products or services are environmentally sustainable.
   
• The allegations: The SEC alleged that between 2019 to 2023, Toronto-based Delphi misled the public in SEC filings, a press statement and on its website about its use of AI and machine learning and how it used client data in its investment strategy. Delphi’s assertions that it “put[s] collective data to work to make our artificial intelligence smarter so it can predict which companies and trends are about to make it big and invest in them before everyone else,” were false, the SEC said.

U.S. appeals court temporarily halts SEC climate-disclosure rules.

A U.S. appeals court has temporarily halted new rules issued by the Securities and Exchange Commission requiring public companies to disclose climate-related risks.

The stay is the first strike against the SEC in what is likely to be a protracted battle over the rule as lawsuits with similar arguments work their way through courts around the U.S. Litigation over the rule is likely to cause some companies to delay compliance plans, but others will still see a need to prepare for the 2026 deadline set by the SEC, lawyers said.

Hedge funds sue SEC over new dealer rule.

The hedge-fund industry sued Wall Street's top regulator on Monday to challenge a new rule increasing scrutiny on firms that are voluminous buyers and sellers of stocks and U.S. government bonds.

The lawsuit opposes a recent broadening in the definition of what the Securities and Exchange Commission considers to be a “dealer” of securities. That change meant that the most active high-speed trading firms and hedge funds in certain markets would face new costs on their businesses, including additional capital and registration requirements.

• U.S. auto-safety regulators have opened an investigation into a recent fatal wreck involving a Ford Motor SUV that is suspected to have involved the automaker’s advanced-driver assistance technology.
   
• China Evergrande Group faces a potential fine of more than half a billion dollars, after Chinese regulators found its most important subsidiary had fraudulently boosted sales and profit in the years before the property company’s spectacular collapse.
   
• The Environmental Protection Agency issued a final rule to prohibit ongoing uses of chrysotile asbestos, the first rule to be finalized under prior amendments in the Toxic Substances Control Act.
   
• Donald Trump’s lawyers on Monday said the former president has been unable to obtain a bond to guarantee payment of a $454 million civil-fraud judgment against him, despite trying to negotiate a deal with some of the largest suretors in the world.

Supreme Court voices skepticism over social-media censorship claims.

The Supreme Court seemed likely Monday to reject a bid by GOP-led states to restrict the federal government from urging social-media companies to remove allegedly misleading posts or disinformation on their platforms, unless there is a threat of official retribution.

The Republican attorneys general of Missouri and Louisiana, along with several individuals who complained that online platforms such as Facebook suppressed their views against vaccines and lockdowns during the Covid-19 pandemic at the government’s demand, filed the First Amendment suit in 2022. Lower courts have largely sided with the plaintiffs, finding that Biden administration officials’ content requests amounted to government coercion, but the high court during oral arguments on Monday voiced more sympathy with the administration’s defense.

• Fresh from an election in which he was the only viable contender, Russia’s Vladimir Putin came out swinging against the West, vowing that peace in Ukraine would come only on his terms, and warning that if NATO put boots on the ground, it could mean nuclear war.
   
• The White House said Israeli Prime Minister Benjamin Netanyahu has agreed to send a team of negotiators to Washington to discuss U.S. concerns over a full-scale military operation in Rafah that would potentially put over a million civilians at risk.

UnitedHealth begins testing restored Change Healthcare claims platform.

UnitedHealth Group began testing its restored medical claims platform at its Change Healthcare unit on Monday, nearly four weeks after a cyberattack forced it to disconnect systems. But getting back to normal won’t be as simple as flipping a switch.

The insurance giant, which owns Change through its Optum subsidiary, said Monday it would release claims preparation software to thousands of customers over the next several days. More than 100 platforms operated by Change, including claims management services, have been offline since a ransomware attack by the ALPHV/BlackCat ransomware gang on Feb. 21, hobbling swaths of the healthcare sector that have been unable to take in revenue.

• Change Healthcare Hack: What You Need to Know

• Stephanie Cohen, one of the most senior executives at Goldman Sachs, is joining an exodus of top female talent from the Wall Street firm.
   
• The Nvidia frenzy over artificial intelligence has come to this: Chief Executive Jensen Huang unveiled his company’s latest chips on Monday in a sports arena at an event one analyst dubbed the “AI Woodstock.”
   
• Don Lemon released the contentious interview with Elon Musk that he alleged led the billionaire to cancel Lemon’s deal with X, saying he didn’t know what had gone wrong.
   
• Embattled electric-vehicle maker Fisker is pausing production for six weeks as it continues deal talks with a large automaker and works to keep the business running.

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