It sometimes comes as a surprise to some policyholders that D&O carriers contend that they have the right to try to recover amounts they have paid as defense expenses if it turns out that coverage for a claim is precluded by a policy exclusion. However, an insurer’s right of defense expense recoupment is by now
Should There Be More Litigation Against Corporate Officers? (Uh, No.)
Over the past fifteen years, there has been a steady progression of corporate scandals, from Enron to options backdating to the excesses that led to the global financial crisis. These debacles were followed by waves of shareholder litigation. However, according to one legal scholar, the shareholder lawsuits all too often concentrate on enforcing legal duties
Guest Post: Give Notice on Your D&O Claim…Yesterday
A frequently recurring management liability insurance coverage issue involves the question of whether or not the policyholder has given timely notice as required under the policy, as I have discussed in prior posts on this blog (most recently here). Among the many kinds of notice issues that can arise are questions involving multiple or
Cornerstone Research: Securities Suit Filings Holding Steady But Cases Are Smaller and Involve Smaller Companies
The number of securities class action lawsuit filings in 2014 was about the same as in 2013, but the cases that were filed were smaller than in the past, according to the annual securities litigation report from Cornerstone Research. However, the likelihood that a public company will be the subject of a filing remained above
Securities Litigation: A Double Whammy for Foreign Investors When U.S. Securities Suit Claimants Recover Financial Misrepresentations Losses?
After investors recently launched a securities class action lawsuit against Petrobras and certain of its directors and officers on behalf of those who purchased the company’s ADSs on U.S. exchanges, I speculated on whether or not investors who purchased their Petrobras shares in Brazil and are therefore precluded from participating in the U.S. lawsuit might
Quick Hits: Cyber Breach Inevitability, Insider Trading Law, and Accountant Liability
Over the past several days there have been a number of items that will be of interest to readers of this blog, which I note briefly here.
First, an article in the December 20, 2014 Wall Street Journal entitled “Sony Made It Easy, But Any of Us Could Get Hacked” (here), contends that
Guest Post: Evolutionary Change in the Liability of an Independent Director in India
The recent Satyam scandal and ensuing litigation put the duties of independent directors under scrutiny. The recently enacted Companies Act of 2013 addressed a number of issues relating to the duties and liabilities of independent directors. In the following guest post, Burzin Somandy of Somandy & Associates in Mumbai takes a look at the approach
Barclays Libor-Scandal Securities Suit Survives Renewed Dismissal Motion
The Libor-scandal based securities suit filed against Barclays and certain of its directors and offices will now be going forward. The case was initially dismissed, but on appeal the Second Circuit vacated a part of the dismissal ruling and returned the case to the district court for further proceedings. The defendants filed a renewed motion
Guest Post: Cybersecurity and Cyber Governance: Understanding and Implementing the NIST Cybersecurity Framework
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On February 12, 2014, the National Institute of Standards and Technology (NIST), pursuant to an Executive Order from President Obama, released the first version of the Framework for Improving Critical Infrastructure (here), to identify standards and practices to promote the protection of critical infrastructure from cyberattack. In a recent speech, SEC Commissioner
Professional Liability Underwriting Society to Host Regional Symposium in Hong Kong on May 27, 2014
On May 27, 2014, the Professional Liability Underwriting Society (PLUS) will host its 2014 Professional Liability Regional Symposium in Hong Kong. This half-day program will focus on regulatory and corporate fraud issues facing the Asian marketplace. PLUS’s presentation of this event marks the third year that PLUS has hosted a regional educational and networking event