On July 28, 2014, in the latest securities suit to be filed in the wake of high-profile concerns about ‘high frequency trading,” a plaintiff shareholder filed a securities class action lawsuit in the Southern District of New York against Barclays and certain of its officers relating to the company’s operation of and alleged statements about
Guest Post: The Cloud, Cyber Security and Cloud Cyber Governance: What Every Director Needs to Know
As I have noted frequently on this blog (most recently here), it is becoming increasingly clear that cybersecurity is viewed as a board level issue. At the same time that many boards have taken up the concerns surrounding cybersecurity issues, their companies increasingly are becoming dependent on cloud computing – which potentially could make
Texas Appellate Court Affirms Transocean Deepwater Horizon Derivative Suit Dismissal: An Interesting Angle on Corporate Inversion Transactions?
In a July 24, 2014 opinion (here), an intermediate Texas appellate court, applying Texas law, affirmed the trial court’s dismissal on forum non conveniens grounds of the Deepwater Horizon disaster-related shareholder derivative suit filed against Switzerland-domiciled Transocean Limited. The court’s ruling is interesting in and of itself, but it may be even more
Though Delaware Legislature Has Tabled Action, Upcoming Judicial Review of Fee-Shifting Bylaws Seems Likely
The Delaware Supreme Court stirred up quite a bit of controversy earlier this year in the ATP Tours, Inc. v. Deutscher Tennis Bund case when it upheld the facial validity of a fee-shifting by law. The bylaw provided that an unsuccessful shareholder claimant in intracorporate litigation would have to pay his or her adversaries’ cost
Advisen Releases 2014 First Half Corporate and Securities Litigation Report
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
Management Liability Insurance and Immigration Enforcement
In a May 1, 2014 opinion (here), District of Kansas Judge Sam A. Crow, applying Illinois law, held that neither the EPL insurance coverage part nor the D&O insurance coverage part of a restaurant company’s management liability insurance policy covered the defense fees incurred or the forfeiture amount ordered in an immigration
Guest Post: Bylaws and Arbitration
![Allen_Claudia_2013_Color[1]](https://www.dandodiary.com/wp-content/uploads/sites/893/2014/07/Allen_Claudia_2013_Color1.jpg)
For many years, business groups and corporate representatives have tried to reform shareholder litigation through legislation and case law development, with mixed success. However, in more recent years an interesting new initiative has emerged – the attempt to achieve litigation reform through amendments to corporate bylaws. This effort received a significant boost last year when
On the Frontiers of Corporate Litigation and Liability: Inversion Transactions and a Proposed Duty to Warn
Among the developments dominating the business headlines in recent weeks have been two unrelated stories – the rising wave of so-called “inversion” transactions in which U.S. companies acquire foreign firms to avoid U.S. tax laws and the revelation of previously undisclosed problems with the ignition switches in certain GM cars that allegedly resulted in numerous
India’s Securities Regulator Imposes Massive Penalties on Satyam’s Founder and Other Executives
On July 16, 2014, India’s securities regulator, the Securities and Exchange Board of India (SEBI), entered an order (here) against the founder and former executives of Satyam Computer Services to disgorge over $306 million in allegedly ill-gotten gains from their role in the scheme to falsify the company’s financial statements, as well as
Despite Policyholder’s Delayed Notice, Insurer Must Cover Subsequent Claims Related to Earlier Timely Claim
On July 16, 2014, the Eighth Circuit, applying New York law, concluded that because a financial services firm’s professional liability insurance policy was ambiguous on the question whether the policy’s timely notice requirements apply to later claims related to a timely original claim, the policy provides coverage for the later claims. The district court had