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

Tag Archives: litigation trends

Cornerstone Research: Average and Aggregate Securities Suit Settlements Plunged in 2014

Posted in Securities Litigation
The aggregate amount of all securities class action settlements during 2014 declined to the lowest level in years and there also was a “dramatic” decrease in the average securities suit settlement amount during the year, according to a March 24, 2014 report from Cornerstone Research. The report, which is entitled “Securities Class Action Settlements: 2014… Continue Reading

Yet Another U.S. Securities Suit Arising From a Latin American Corruption Investigation

Posted in Securities Litigation
In yet another U.S. securities class action lawsuit involving a non-U.S. company and a corruption investigation in the company’s home country, on March 19, 2015 a shareholder of Chemical & Mining Company of Chile, Inc. (Sociedad Quimica y Minera de Chile, S.A, or SQM), the world’s largest producer of iodine and lithium and a major… Continue Reading

Why Are Investors Seeking Litigation Funding Opportunities? Because Litigation Funding is Profitable

Posted in Litigation Financing
In a March 9, 2015 article entitled “Hedge Fund Manager’s Next Frontier: Lawsuits” (here), the Wall Street Journal described how the “next act” for EJF Capital LLC, a hedge fund run by Friedman, Billings, Ramsay Group’s former co-founder Emmanuel Friedman, will be to deploy a new litigation finance arm that has already, according to the… Continue Reading

Life Sciences Companies and Securities Litigation: 2014 Update

Posted in Securities Litigation
Life sciences companies are “an increasingly popular target” of securities class action lawsuits, according to the annual securities litigation survey from the David A. Kotler of the Dechert law firm. According to the March 16, 2015 report, entitled “Dechert Survery of Securities Fraud Class Actions Brought Against U.S. Life Sciences Companies,” the number of 2014… Continue Reading

Cornerstone Research Releases 2014 M&A Litigation Report

Posted in Shareholders Derivative Litigation
According to the latest report from Cornerstone Research, during 2014, over 90 percent of M&A transactions resulting in at least one lawsuit, but each deal attracted a smaller average number of lawsuits and in fewer jurisdictions than in past years. The report, entitled “Shareholder Litigation Involving Acquisitions of Public Companies: Review of 2014 M&A Litigation”… Continue Reading

Takeover Litigation Continued at Heightened Levels in 2014

Posted in Shareholders Derivative Litigation
One of the most distinctive corporate and securities litigation trend in recent years has been the surge in M&A-related litigation, with virtually every deal attracting at least one lawsuit. This trend continued again in 2014, according to a recently updated study from Matthew Cain, an economic fellow at the SEC, and University of California Berkeley… Continue Reading

Thinking About Bondholder Securities Class Actions

Posted in Securities Litigation
When the topic is securities class action litigation, what is usually considered are lawsuits brought under the federal securities laws by shareholders. By way of illustration, when considering the extent of a company’s potential exposure to a future securities class action lawsuit, the starting point is usually the company’s market capitalization (that is, the number… Continue Reading

NERA Releases Canadian Securities Class Action Litigation Report

Posted in International D & O
The number of securities class action lawsuit filed in Canada during 2014 was consistent with the recent annual average number of filings, and because case filings exceeded case resolutions, the aggregate total of unresolved class actions continued to grow during the year, according to a February 10, 2015 report from NERA Economic Consulting. According to… Continue Reading

IPO-Related Securities Suit Filings Surge – in State Court?

Posted in IPOs
A probable accompaniment of the increased IPO activity during 2013 and 2014 is an increase in IPO-related litigation, as I have previously noted. There has already been one high-profile IPO-related securities suit filed this year, the securities class action lawsuit filed last week against the Chinese e-commerce giant Alibaba. And if the two additional new… Continue Reading

Advisen Releases 2014 Corporate and Securities Litigation Report

Posted in Securities Litigation
New corporate and securities lawsuit filings and enforcement actions were down for the third consecutive year in 2014, according to the latest annual report from the insurance information firm, Advisen. According to the report, which is entitled “D&O Claims Trends: 2014 End of Year Wrap-Up,” and which can be found here, the decrease in the number… Continue Reading

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