Securities class action lawsuit filings “saw a small increase” during 2013, while securities class action settlements reflected a dynamic in which “large settlements got larger and smaller settlements got smaller” during the year, according to the annual report from NERA Economic Consulting. The January 21, 2014 report, entitled “Recent Trends in Securities Class Action Litigation:
The Target Cyber Breach and Cyber Disclosure Practices
In a front-page, above-the-fold article on Saturday, January 18, 2014 — that is, more than a month after Target first learned from the Secret Service that the company had been the subject of a massive cyber security hack – the New York Times reported that the company was vulnerable to the cyber attack because its
D&O Insurance: Settlement of Antitrust Claim for Underpaid Wages Not Excluded “Disgorgement”
A settlement of an antitrust lawsuit alleging that a group of hospitals conspired to underpay their nurses did not represent excluded “disgorgement” and therefore was not excluded from coverage under William Beaumont Hospital’s management liability insurance policy, according to a January 16, 2014 Sixth Circuit decision. The opinion will likely be of particular interest to
Guest Post: Addressing D&O Insurance in German Board Members’ and Managing Directors’ Management Services Agreements
A company’s obligations to its directors and officers with respect to the purchase and maintenance of D&O insurance is a topic of ongoing interest and concern for the individuals involved. In the following Guest Post, Burkhard Fassbach and Thilo Fleck take a look at this topic with a particular focus on the issues involving German
Litigation Funding in the Courts
Third-party litigation funding continues to attract investors, as evidenced by relatively new litigation funding firm Gerchen Keller Capital’s recent $260 million capital raise, which brings their total investor commitments to $310 million (as discussed in a January 12, 2013 New York Times article, here). As litigation has become more prevalent, courts have had
Guest Post: Here We Go Again? Financial Institutions Face Heightened Regulatory Scrutiny Over Forex and Other Unregulated Rates
The global financial services industry is still reeling from the regulatory investigations surrounding the Libor scandal. Nevertheless, it seems that yet another scandal may be about to envelop the industry. In the following guest blog post Eric C. Scheiner and Jennifer Quinn Broda1]of the Sedgwick law firm take a look at what looks
Guest Post: More than a Machine: “Robocop” Stole the Headlines, but the Financial Reporting and Audit Task Force is the Real Driver Behind the SEC’s Refocus on Accounting Irregularities
As noted in a recent guest post on this site (here), the SEC recently announced the so-called “Robocop” initiative to try to detect improper or fraudulent financial reporting. However, as the authors of the prior post explain in a second guest post below, the Robocop initiative is one of two efforts the agency
Takeover Litigation in 2013
One of the most distinctive corporate and securities litigation trend in recent years has been the surge in M&A-related litigation, with virtually every deal attracting at least one lawsuit. This trend continued again in 2013, according to a recently updated study from Notre Dame business professor Matthew Cain and Ohio State law professor Steven Davidoff.
Eleventh Circuit Rejects FDIC’s “No Duty” Argument, Allows Post-Receivership Affirmative Defenses Against the Agency
One of the most contentious issues in the litigation the FDIC has been pursuing in its capacity as receiver of various failed banks is whether the defendant former directors and officers can assert affirmative defenses against the FDIC for the agency’s own conduct.
In a part of a December 23, 2013 Eleventh Circuit opinion
Mug Shots for the New Year
What better way to start off the New Year than with another round of readers’ mug shots. The pictures posted below should help to get 2014 off to a colorful start.
Readers will recall that in a recent post, I offered to send out a D&O Diary coffee mug to anyone who requested