The D&O Diary

The D&O Diary


Tag Archives: litigation trends

NERA Securities Litigation Report: Filings Flat, Number and Value of Settlements Plunge

Posted in Securities Litigation
The number of securities class action filings in 2014 was level with recent years’ filings but the number and dollar value of settlements during the year plunged, according to the latest annual report from NERA Economic Consulting. This year’s report is quite detailed and contains a number of new analyses of lawsuit filings and case … Continue Reading

Massive and Unusual Freeport-McMoRan Derivative Lawsuit Settlement Finalized

Posted in Shareholders Derivative Litigation
The parties to the Freeport-McMorRan Copper & Gold, Inc. Derivative Litigation have finalized an agreement to settle the consolidated litigation pending in the Delaware Chancery Court in exchange for a payment of $137.5 million and for the company’s agreement to adopt certain corporate governance reforms. The settlement represents the third largest derivative lawsuit settlement ever. … Continue Reading

The Top Ten D&O Stories of 2014

Posted in Director and Officer Liability
The year just ended was an eventful one in the world of directors’ and officers’ liability. Many of the year’s key events represented significant changes in the D&O liability environment. Many of the changes during 2014 have important implications for 2015 – and possibly for years to come. The list of the Top Ten D&O … Continue Reading

ACA Employer Mandates and Potential Liability Issues

Posted in Affordable Care Act
The employer mandate provisions of the Affordable Care Act – better known as Obamacare – are among the more controversial parts of the legislation. The mandates were originally scheduled to go into effect in 2014, but after lobbying efforts from various business groups, the mandates’ effective dates were postponed. However,  for many employers, the mandates … Continue Reading

Two Recent Massive Merger Objection Lawsuit Settlements Include Significant D&O Insurer Contributions

Posted in Shareholders Derivative Litigation
One of the great litigation curses in recent times in the corporate litigation arena has been the rise of merger objection litigation. These kinds of lawsuits, which these days arise in connection with almost every M&A transaction, often are settled for nothing more than an agreement to make additional disclosures and to pay the plaintiffs’ … Continue Reading

A Whole Bunch of Interesting Litigation and Enforcement Statistics and Analyses

Posted in Securities Litigation
A single case may involve a host of interesting issues but sometimes the important lessons can only be discerned when many cases are considered collectively. This past week saw the release of some interesting analyses of aggregate litigation and enforcement statistics, each set of which told some interesting tales to tell and identified some important … Continue Reading

Advisen Releases Third Quarter Corporate and Securities Claims Trends Report

Posted in Securities Litigation
Continuing an recent downward trend, corporate and securities litigation filings during the third quarter declined, both compared to the prior quarter and compared to the third quarter last year, according a new report from Advisen, the insurance information firm. In its report, entitled “D&O Claims Trends: Q3 2014” (available here), Advisen reports that corporate and … Continue Reading

More Shareholder Litigation Involving Corporate Inversion Transactions

Posted in Shareholders Derivative Litigation
One of the more distinctive business trends in recent months has been the surge of so-called corporate inversion transactions, in which a domestic U.S. company merges with a non-U.S. company, with the the successor company to be based in the foreign country in order to take advantage of a more favorable corporate tax regime. These … Continue Reading

IPO-Related Securities Litigation Picks Up

Posted in IPOs
In several posts of the last several months (most recently here), I have commented that with the increased number of IPOs, an increase in IPO-related securities litigation would likely follow. If the securities litigation filing activity over the last couple of weeks is any indication, the anticipated increase in IPO-related securities litigation has arrived. Interestingly, most … Continue Reading

While You Were Out

Posted in Director and Officer Liability
I have no idea where summer went, but with the passage of Labor Day weekend there’s no denying that summer is over and that it is time to get back to work. For those of you who were fortunate enough to take some time off this summer or who maybe just found it a little … Continue Reading

Another Environmental Disclosures Securities Suit Survives Initial Pleading Hurdles

Posted in Environmental Liability
In recent months, there have been a number of securities class action lawsuits filed based on alleged misrepresentations of the defendant company’s environmental compliance. On August 7, 2014, the securities suit filed against Exide Technologies and certain of its directors and officers based on the defendants’ allegedly misleading statements about the company’s compliance with environmental … Continue Reading

Cornerstone Research Releases Securities Litigation Report for the First Half of 2014

Posted in Securities Litigation
According to the latest report from Cornerstone Research, the number of securities class action lawsuit filings during the first half of 2014 were down compared to historical filings semiannual filing levels although slightly higher than the number of filings in the first half of 2013. The report, which is entitled Securities Class Action Filings – … Continue Reading

SEC Files Enforcement Action Over Internal Controls Reporting: A Sign of Things to Come?

Posted in Securities Litigation
One of the noteworthy features of the Sarbanes-Oxley Act was the legislation’s creation of the requirement for reporting companies to provide a certification from management regarding the company’s internal controls. This requirement has not been the focus of a great deal of attention since the legislation was enacted in 2002. However if the administrative actions … Continue Reading

Advisen Releases 2014 First Half Corporate and Securities Litigation Report

Posted in Securities Litigation
The level of all corporate and securities filings continued to decline in the second quarter of 2014 as filing activity returns to levels that prevailed before the financial crisis, according to the latest quarterly D&O claims activity report of Advisen. According to the report, filing levels in the second quarter reflected the “fewest securities and … Continue Reading

Cornerstone Research Releases 2013 Analysis of Securities Suits Involving Accounting Allegations

Posted in Securities Litigation
Though the number of securities class action lawsuit containing accounting allegations remained essentially the same in 2013 compared to 2012, the market capitalization losses associated with the 2013 suits were more than double the losses associated with the 2012 suits, according to a new report from Cornerstone Research. The report contains a brief analysis of … Continue Reading

Advisen Releases First Quarter 2014 Corporate and Securities Litigation Report

Posted in Securities Litigation
Overall Filings of corporate and securities lawsuits during the first quarter of 2014 were at their lowest levels since before the financial crisis, according to the latest report from Advisen, the insurance information firm. The April 2014 report, which is entitled “D&O Claims Trends: 2014,” can be found here. As discussed below, the report will … Continue Reading

Cornerstone Releases 2013 Study of M&A Lawsuit Settlements

Posted in Director and Officer Liability
Only two percent of M&A lawsuit that settled in 2013 involved a monetary payment to shareholders, according to the latest report on M&A lawsuit settlements from Cornerstone Research. The report, entitled “Settlements in Shareholder Litigation Involving Mergers and Acquisitions: Review of 2013 M&A Litigation” (here), is the second part of a two-part series on M&A … Continue Reading

PwC 2013 Securities Litigation Report Asks Whether There Are Changes Ahead

Posted in Securities Litigation
In its recently released annual analysis of securities class action litigation, PricewaterhouseCoopers observes that while 2013 may not have been a particularly noteworthy year in the securities class action litigation arena, “significant events and announcements in 2013 have set the stage for potentially sweeping changes in the future.” The PwC report, which is entitled “Are … Continue Reading

Cornerstone Research Releases 2013 Securities Class Action Settlements Analysis

Posted in Securities Litigation
Owing to a number of larger settlements, the average securities class action settlement amount in 2013 rose, while at the same time the media settlement amount declined, according to a study of the securities suit settlements from Cornerstone Research. The study also reports that the number of settlements and the aggregate dollar value of all … Continue Reading