A frequent component of derivative litigation resolution is an award to the plaintiffs of the fees and expenses the plaintiffs incurred in pursuing the suit. A contentious, recurring question is whether D&O insurance covers fee awards to derivative litigation plaintiffs. This issue received a through going over in a February 17, 2011 opinion from a
CalSTRS Wins Rare Securities Suit Jury Verdict Against Homestore CEO
Securities lawsuits rarely go to trial, but on February 24, 2011, just three months after the last securities suit trial concluded, a Central District of California rendered a verdict on behalf of plaintiffs against the sole trial defendant, the former CEO of the defunct Homestore company. The jury found that the defendant, Stuart H. Wolff
A Closer Look at Buffett’s Annual Letter to Berkshire Shareholders
On February 26, 2011, Berkshire Hathaway issued Chairman Warren Buffett’s much-anticipated annual letter to the company’s shareholders (here). Although aficionados of Buffett’s letters will not be disappointed, this year’s letter is largely focused on Berkshire’s performance and has fewer excursions into larger topics than in past years. (Full disclosure: I own BRK.B shares
FDIC: Number of Problem Institutions Continues to Increase
Though 2010 was a "turnaround" year for banks, the number of problem institutions continued to increase during the year, according to the FDIC’s Quarterly Banking Profile for the fourth quarter of 2010. A copy of the FDIC’s February 23, 2011 press release about the report can be found here, and the Quarterly Banking Profile
Vivendi Court Narrows Securities Suit Class, Applying Morrison
In the long-awaited rulings on the post-trial motions in the Vivendi securities case, Judge Richard Holwell has entered a February 22, 2011 order materially narrowing the plaintiff class based on the U.S. Supreme Court’s holding in Morrison v. National Australia Bank. A copy of Judge Holwell’s opinion, in which he eliminated ordinary shareholders
Towers Watson Releases 2010 D&O Liability Survey Report
Great news – the survey is back. After year’s interruption, Towers Watson has resumed its annual D&O Liability Survey. The report for the 2010 survey (a copy of which can be found here) is full of valuable information about D&O insurance policyholders’ limits selection, program structure, and claims experiences, among many other things. The
Satyam Agrees to Pay $125 Million to Settle Securities Suit
In a settlement that has a number of interesting features, Satyam Computer Services, an Indian technology outsourcing company, has agreed to pay $125 million to settle the consolidated securities class action litigation pending against the company in Southern District of New York.
The only settling defendant is the company itself, which is now known
Imax Defendants Denied Leave to Appeal Rulings Allowing Ontario Securities Case to Proceed as Global Class Action
In a February 14, 2011 order (here), an Ontario Superior Court Justice has denied the motion of the defendants in the IMAX securities lawsuit pending in Ontario for leave to appeal the December 2009 rulings of Ontario Superior Court Justice Katherine van Rensberg granting the plaintiffs leave to pursue securities claims in a
A “Global Guide” to Directors’ Liability and Indemnification
In today’s global economy, business increasingly is conducted cross-jurisdictionally. Company officials and their advisors increasingly must grapple with liability issues arising under the laws of multiple jurisdictions. These liability issues in turn can present complex indemnification and insurance questions. Simply identifying the operative legal considerations can present a significant challenge.
A newly updated legal
Second Circuit Reinstates Blackstone Group IPO Securities Suit
In a February 10, 2011 opinion (here), the Second Circuit reversed the lower court’s dismissal of the securities class action lawsuit relating to The Blackstone Group’s June 2007 IPO. The decision, which represents a noteworthy victory for plaintiffs, contains an extensive analysis of "materiality" requirements and could prove significant in the many other