Every participant in the world economy currently faces an environment fraught with geopolitical risk, with a war in the Middle East showing a dangerous potential to expand, a war in Ukraine that continues to flame, tensions in the South China Sea, and many other concerns. While companies’ operating risks in these environments in many cases may seem apparent, it may not always be obvious how geopolitical risks can translate into corporate and securities litigation. A recent securities class action lawsuit filed against technology company Super Micro Computer provides some insight into these litigation risks. Although the lawsuit involves a host of issues, among the principal concerns are allegations that the company misrepresented its compliance with trade control regulations restricting exports to Russia. These allegations illustrate how trade issues, for example, can contribute to securities litigation activity. A copy of the new complaint in the Super Micro Computer case can be found here.Continue Reading Geopolitics and Securities Litigation Risk
Geopolitical Risk
Guest Post: Risk Management and Insurability of Geopolitical Risks
We live in an era of complex geopolitical risks. The current geopolitical environment presents significant challenges for companies and their boards of directors. In the following guest post, Burkhard Fassbach, a D&O lawyer in private practice in Germany, reviews the important risk management approaches and insurance solutions available for companies to try to address these complex geopolitical risks. I would like to thank Burkhard for allowing me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Burkhard’s article.Continue Reading Guest Post: Risk Management and Insurability of Geopolitical Risks