The bankruptcy context is particularly ripe for D&O claims, and it also represents a particularly difficult claims context for D&O insurers. Anyone with any doubts about just how complicated bankruptcy claims can be will want to take a look at the settlement that the various concerned parties recently reached in the bankruptcy of defunct Florida
FDIC Failed Bank Litigation Update
Typically, the FDIC updates the professional liability lawsuits page about once a month, but on June 7, 2013, only about two weeks after its last update, the FDIC again updated the page to include new lawsuit information. According to the information in the latest update, the FDIC has now filed a total of 65
Picture Gallery: Readers’ Mug Shots
We make it our business to cover a lot of ground here at The D&O Diary, and apparently so do this blog’s readers, at least judging by the first round of pictures readers have sent in as “mug shots” of The D&O Diary coffee mug. Readers will recall that in a recent post,
Second Circuit: Excess D&O Insurance Not Triggered When Underlying Carriers Are Insolvent, Even If Loss Exceeds Excess Attachment Point
On June 4, 2013, the Second Circuit, in an insurance coverage action involving the defunct Commodore International computer company, affirmed that excess D&O insurance is not triggered even if losses exceed the amount of the underlying insurance, where the underlying amounts have not been paid due to the insolvency of underlying insurers. The Second Circuit’s
Cyber Breach Disclosures and the Impact on Companies’ Share Prices
The possibility of securities litigation following the disclosure of a cyber security breach has been a topic of significant recent attention, including on this site. There already have been securities class action lawsuits filed following significant cyber breaches, at least in some cases. More recently, however, the stock prices of several major companies
Local Governments and Securities Litigation Risk
In two administrative enforcement actions last month, the SEC charged two municipalities – Harrisburg, Pa. and South Miami, Fla. – with securities fraud. These high-profile actions sounded alarm bells and raised concerns about possible securities violations involving other state and local governments. But while these two actions have grabbed a great deal of attention, the unfortunate
Guest Post: Securing the Director and Officers Liability Insurance Lifelines! What Every Director Needs to Know – Before Entering Troubled Waters
At times of trouble, D&O insurance can represent the last line of defense for corporate directors. For that reason, corporate board members rightfully are concerned about their insurance and want reassurance that their company’s policy will provide them the protection they will need. Unfortunately, directors don’t always know the questions to ask and only find
InSights: The Significance and Implications of the $139 Million News Corp. Derivative Suit Settlement
One of the more interesting recent developments in the world of corporate and securities litigation was the $139 million settlement of the News Corp. shareholders derivative suit. Not only is this settlement apparently the largest ever cash settlement of a shareholders derivative suit, but the entire amount of the settlement is to be funded by
FDIC: Banking Sector Improves, Problem Banks Persist
The improvement in the banking sector continued in the first quarter of 2013, according to the FDIC’s Quarterly Banking Profile for the first quarter of 2013, which the agency released on May 29, 2013. A copy of the Quarterly Banking Profile can be found here. Overall the industry reported aggregate first quarter net income
D&O Insurance: Providing Coverage for Plaintiffs’ Fee Awards?
A recurring D&O insurance coverage issue is the question of whether or not the D&O insurance policy provides coverage for a plaintiffs’ fee award. The question often arises in the context of a settlement of a shareholders’ derivative suit that includes an agreement to pay the plaintiffs’ attorneys fees as part of the settlement. In