It was 20 years ago this week – on May 6, 2006 – that The D&O Diary published its first blog post. Two decades and literally thousands of blog posts later, The D&O Diary is still at it, still a “Periodic Journal,” still publishing “Items of Interest from the World of Directors and Officers Liability, With Occasional Commentary.”
Continue Reading The D&O Diary Celebrates Its 20th Anniversary
According to industry reports, education technology companies experienced unprecedented demand during COVID‑19, fueled by remote learning mandates and significant public investment in digital infrastructure. School districts rapidly deployed laptops, software platforms, and immersive learning tools while students were learning remotely. However, now that classrooms have largely returned to in‑person instruction, a growing backlash against ed‑tech has begun to emerge. In the last month, both the New York Times and Wall Street Journal have reported on the backlash from educators and parents, as well as study results showing the deteriorating effect of technology use in classrooms.
This recent reporting has coincided with certain ed‑tech companies confronting tightening capital markets, operational challenges, and increasing scrutiny from investors and regulators. A complaint filed against zSpace, Inc (zSpace) and its directors and officers on April 23, 2026 (zSpace SCA), may demonstrate how these converging dynamics are now beginning to manifest in securities litigation. The following will discuss the zSpace SCA allegations, the company’s purported financial pressures, and potential D&O exposure for companies in the ed‑tech industry.
Continue Reading Ed-Tech Backlash and Emerging Securities Litigation Risk
One of the perennial D&O insurance issues involves the question whether “disgorgement” amounts awarded in SEC proceedings represent “penalties” for which insurance coverage is precluded. In the latest example of a case involving these issues, the Delaware Superior Court recently held, in reliance on the statutory provisions defining the SEC’s authority to seek monetary remedies, that the disgorgement amounts and prejudgment interest awarded against the media company Clear Channel are not “penalties” for which coverage is precluded. As discussed below, the court’s analysis of the issues, and its reference to the relevant statutory provisions, is both detailed and instructive.
Continue Reading Del. Court: SEC Disgorgement Not a “Penalty” for Which Coverage is Barred
In the following guest post, Evan Bundschuh and Burkhard Fassbach share and analyze their research into the AI-related Form 10-K disclosures of 26 U.S.-listed public companies, in order to assess the level and significance of public companies’ disclosure statements pertaining to artificial intelligence. Evan is Vice President at GB&A, a retail insurance brokerage in New York, and Burkhard is a D&O lawyer in private practice in Germany. My thanks to Evan and Burkhard for allowing us to publish their article on this site. Here is their article.
Continue Reading Guest Post: Mapping AI Risks: Insights from 2025 10-K Filings