As many readers will recall, a couple of years ago there was an intense barrage of securities litigation class action lawsuit filings against U.S.-listed Chinese companies. Many of the cases involved Chinese companies that obtained their U.S. listings by way of a reverse merger with publicly traded shell, and almost all of the cases involved alleged
Notes from Around the Web and Around the World
Canadian Courts May Attract Securities Claims, But Claimants Still Must Show They Belong There: Much has been written (on this site and elsewhere) about the possibility that Canada might become a destination for would-be securities plaintiffs. That perspective gained an apparent boost in March 2012, when the Ontario Court of Appeals held that the liability
What to Watch Now in the World of D&O
Every fall, I take a step back and survey the most important current trends and developments in the world of Directors’ and Officers’ liability and D&O insurance. This year’s survey is set out below. Once again, there are a myriad of things worth watching in the world of D&O.
How Will the Interrelatedness Issue
FDIC Report Shows That Despite Improvement Problem Banks Persist
The FDIC’s Quarterly Banking Profile for the second quarter of 2013, which the agency released on August 29, 2012, shows that the general positive trends in the banking industry are continuing, but revenue growth is weak and the low interest rate environment is creating challenges for many banks. In addition, the number of problem institutions
Still More Readers Mug Shots
The pictures readers have taken with their D&O Diary mugs have continued to arrive. The range of settings and locations continues to impress and entertain.
Readers will recall that in a recent post, I offered to send out to anyone who requested one a D&O Diary coffee mug – for free – but
Regulatory Enforcement: Using FIRREA to Prosecute Financial Fraud
Back in 2009, when the current bank failure litigation wave was in its very earliest stages, I noted that in its preliminary efforts to lay the groundwork to pursue failed bank litigation, the FDIC had resurrected FIRREA, a statutory vestige from the S&L crisis in the late 80s and early 90s that had in the
The SEC’s New Policy Requiring Admissions of Wrongdoing: What Are the Implications?
On August 19, 2013, in connection with its entry into a settlement with New York-based hedge fund adviser Phillip Falcone and his advisory firm Harbinger Capital Partners, the SEC for the first time implemented its new policy requiring defendants seeking to settle civil enforcement actions to provide admissions of wrongdoing, in contrast to the long-standing
First Circuit: Private Equity Fund Liable for Bankrupt Portfolio Company’s Pension Obligations
On July 24, 2013, in a case the court said was one of “first impression,” the First Circuit held that, due to the nature of its involvement in the management of its portfolio company’s operations, a private equity firm was potentially liable for the portfolio company’s pension obligations. The decision has significant implications for the
Bankers’ Professional Liability Insurance Does Not Cover Overdraft Fee Class Action Settlement
A recurring question under the management liability insurance protection that banks typically acquire is the extent of the protection afforded under their policies’ professional liability provisions. One particular question that often arises is whether the policy affords coverage for customers’ excessive overdraft fees claims.. An August 7, 2013 decision by Northern District of Georgia Judge
Second Circuit Enforces FLSA Class Action Waiver
Earlier this summer when the U.S. Supreme Court issued its opinion in Italian Colors v. American Express, in which the Court enforced a class action waiver in an arbitration agreement to compel the claimants to arbitrate their antitrust claims, the decision seemed likely to have widespread impact even outside the antitrust context. On August 9, 2013, in