The D&O Diary

The D&O Diary

A PERIODIC JOURNAL CONTAINING ITEMS OF INTEREST FROM THE WORLD OF DIRECTORS & OFFICERS LIABILITY, WITH OCCASIONAL COMMENTARY

Category Archives: Opt-Outs

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Cornerstone Research Releases Securities Suit Opt-Outs Study

Posted in Opt-Outs
On November 19, 2013, Cornerstone Research, in conjunction with the Latham & Watkins law firm, released a report analyzing securities suit opt-out cases. The report, entitled “Opt-Out Cases in Securities Class Action Settlements,” and which can be found here, takes a comprehensive look at cases in which individual class members have opted out of the … Continue Reading

Securities Class Action Opt-Outs: Back with a Vengeance?

Posted in Opt-Outs
One of the more interesting story lines in the securities class action litigation arena in recent years has been the emergence of substantial class action opt-out litigation, whereby various claimants representing significant shareholder ownership interests select out of the class suit and separately pursue their own claims – and settlements. The class action opt-out litigation … Continue Reading

Are Securities Class Action Opt-Out Actions Back?

Posted in Opt-Outs
Settlement opt-outs have been always been a feature of securities class action litigation. However, as part of the settlements of the huge cases filed during the era of corporate scandals at the beginning of the last decade, opt outs became more prevalent and they represented an increasingly significant part of the case resolution. Many of … Continue Reading

Web Notes and Updates

Posted in Corporate Governance, Opt-Outs
NYSE Commission on Corporate Governance: On September 23, 2010, the NYSE Commission on Corporate Governance issued a report (here) following a two year review of governance issues and considerations. The Commission, chaired by Larry Sonsini of the Wilson Sonsini law firm, included more than two dozen members representing a broad range of constituencies, and its … Continue Reading

Legislative Reform for the Securities Laws Before the 2010 Elections?

Posted in Opt-Outs, Options Backdating, Securities Litigation
Over the years, legislative reforms of the U.S. securities laws have cycled back and forth, between initiatives, on the one hand, to discourage abusive litigation and, on the other hand, to restrain corporate misconduct. In the current Wall Street bailout, post-Madoff environment, sentiment may be running high for legislative reforms that could expand liabilities under … Continue Reading

Class Action Opt-Outs: The Impact of Competition on Securities Lawsuit Resolution

Posted in Opt-Outs
I have previously noted (most recently here) the increasing significance of opt-out actions as a part of securities lawsuit resolution. Columbia Law School Professor John Coffee, in a March 27, 2008 paper entitled “Accountability and Competition in Securities Class Actions: Why ‘Exit’ Works Better Than ‘Voice’” (here) examines the opt-out phenomenon and concludes that while … Continue Reading

Tracking the Opt-Out Settlements

Posted in Opt-Outs, Securities Litigation
In prior posts (most recently here), I have written about the increasing importance of opt-out settlements in the context of securities class action litigation. Along the way, numerous readers have inquired whether I am aware of a publicly available resource that is tracking the securities lawsuit opt-out settlements. I am not aware of any public … Continue Reading

Brave New Securities Lawsuit World: Qwest Opt-Out Settlements Exceed Class Settlement

Posted in Opt-Outs
In the latest in the series of significant opt-out settlements, two different state pension funds have announced settlements with Qwest in their separate securities actions against the company. In both instances, the funds announced that their separate settlements far exceeded the amounts that they would have recovered in Qwest’s $400 million class action settlement (refer … Continue Reading

Opt-Outs: A Worrisome Trend

Posted in Opt-Outs
In the latest issue of InSights, entitled “Opt-Outs: A Worrisome Trend in Securities Class Action Litigation ” (here), I review recent opt-out settlement developments, take a look at whether or not the current trend will continue, and examine what the trend may mean for D&O carriers and policyholders. Prior D & O Diary posts on … Continue Reading

Ohio Joins the Time Warner Opt-Out Settlement Parade

Posted in Opt-Outs
The Ohio Attorney General, Marc Dann, issued a March 7, 2007 press release (here) announcing a $144 million net settlement in the opt-out action filed against the Time Warner defendants on behalf of the Ohio Bureau of Workers’ Compensation and five state pension funds. As explained further below, the gross amount of the settlement is … Continue Reading

Institutional Investors, Lead Plaintiffs, and Opt-Outs

Posted in Opt-Outs, Securities Litigation
A frequently repeated – but demonstrably false – statement about securities class action lawsuits is that, while public pension funds have served as lead plaintiffs in securities fraud lawsuits, private institutional investors, such as banks, mutual funds, and insurance companies, have not. However, as Adam Savett points out (here) on the Securities Litigation Watch blog, … Continue Reading

More Massive Opt-Out Settlements

Posted in Opt-Outs, Securities Litigation
In recent posts (most recently here and here), I have commented on the worrying trend toward institutional investor opt-out cases and the massive settlements that have followed. In a February 28, 2007 press release (here), the University of California announced the latest of institutional investor opt-out settlement, a $246 settlement on the University’s behalf with … Continue Reading

Class Action Opt-Outs: The New Frontier

Posted in Opt-Outs
My recent posts on securities fraud opt-out litigation settlements (here and here) provoked a number of interesting responses, including one comment that was so detailed that I thought it would make an interesting guest blog post. The commentator accepted my invitation to be a D & O Diary guest blogger. I am pleased to present … Continue Reading

Do We Need Private Securities Lawsuits?

Posted in Opt-Outs, Securities Litigation
In a widely-circulated and much discussed February 7, 2007 Wall Street Journal op-ed column entitled "The Class Action Market" (here, subscription required), former SEC Commissioner and Stanford Law Professor Joseph Grundfest (pictured above) takes a look at the declining number of securities fraud lawsuits in 2006 (see prior D & O Diary posts here and … Continue Reading

Opt-Outs, Claims Severity and D & O Insurance Limits

Posted in D & O Insurance, Opt-Outs, Securities Litigation, Videos
In the latest of the securities class action opt out settlements, California’s teacher pension fund reached a $46.5 million settlement in its separate case against Qwest Communications, its accountants and investment banks, and certain former directors and officers. According to news reports (here), the parties resolved the pension fund’s case, which was pending in the … Continue Reading