Overall Filings of corporate and securities lawsuits during the first quarter of 2014 were at their lowest levels since before the financial crisis, according to the latest report from Advisen, the insurance information firm. The April 2014 report, which is entitled “D&O Claims Trends: 2014,” can be found here. As discussed below, the report
D&O Policy Excluding “Receiver” Claims Bars Coverage for FDIC Failed Bank Lawsuit
In an interesting April 7, 2014 opinion (here), Magistrate Judge Stanley A. Boone of the Eastern District of California, applying California law, held that a D&O insurance policy’s insured vs. insured exclusion precludes coverage for claims brought against former officers of the failed County Bank of Merced, California by the FDIC in its
Flash Boys Litigation: High Frequency Traders, Brokers and Securities Exchanges Hit With Securities Suit
The topic of high frequency trading has dominated the business headlines since the late March publication of Michael Lewis’s new book, “Flash Boys: A Wall Street Revolt.” The SEC, the U.S. Department of Justice and the Federal Bureau of Investigation have confirmed that they are investigating high frequency trading, as has the New
The Latest Stockpile of Readers’ Mug Shots
Because the latest round of mug shots is long overdue, quite a backlog of pictures has built up. The latest round of readers’ photos may be a bit late but it may also be one of the best collections yet.
Readers will recall that almost one year ago, I offered to send out a
Liability Exposures of Audit Committee Chairs
One frequently asked question is whether members of a corporate board’s audit committee face heightened liability exposures. Two recent SEC enforcement actions seem to underscore that audit committee chairs do face liability exposures. Though both cases involve somewhat unusual circumstances, they seem to suggest that the “gatekeepers” on which SEC has said it will be
Guest Post: Social Media and D&O Liability Exposures
Earlier this week I published a post on this site about the employment practices liability exposures that the social media may present for employers. After seeing my post, D&O maven Dan Bailey of the Bailey Cavalieri law firm send me a note pointing out that the social media also present D&O liability exposures for companies
Cornerstone Releases 2013 Study of M&A Lawsuit Settlements
Only two percent of M&A lawsuit that settled in 2013 involved a monetary payment to shareholders, according to the latest report on M&A lawsuit settlements from Cornerstone Research. The report, entitled “Settlements in Shareholder Litigation Involving Mergers and Acquisitions: Review of 2013 M&A Litigation” (here), is the second part of a two-part series
PwC 2013 Securities Litigation Report Asks Whether There Are Changes Ahead
In its recently released annual analysis of securities class action litigation, PricewaterhouseCoopers observes that while 2013 may not have been a particularly noteworthy year in the securities class action litigation arena, “significant events and announcements in 2013 have set the stage for potentially sweeping changes in the future.” The PwC report, which is entitled “Are
D.C. Circuit Strikes Down SEC Conflicts Minerals Rules in Part, Upholds Other Provisions
In an April 14, 2014 Opinion (here), the D.C. Circuit struck down a portion of the SEC’s conflicts minerals rules as violative of the First Amendment, while at the same time upholding the other challenged portions of the Rules. A majority of the appellate panel found that the rules’ requirement that companies must
Employers and Social Media
In a very short time period, Internet-based social media have become a pervasive part of our lives and culture. Inevitably, employee use of social media has become a workplace issue. As a result, employers are concerned about employee social media use and employees are concerned about privacy and rights of individual expression. As social media