In an August 15, 2007 opinion (here), Delaware Chancery Court Chancellor William B. Chandler III reexamined his February 6, 2007 refusal to dismiss plaintiffs’ claim involving stock option springloading against directors and officers of Tyson Foods, Inc. In his earlier opinion (here), Chandler had held, in response to the defendants’
Seven Ways Counsel Can Help Clients with D&O Claims
During a panel discussion on the topic of “Advising a Public Company in Crisis” at the ABA Annual Meeting earlier this week, unexpected time constraints forced me to dramatically abbreviate my planned remarks. On the fly, I fashioned what turned into a list of seven pointers for outside counsel who are assisting their clients in
All Subprime, All the Time
At about this time last year, it sometimes seemed to me as if all I was writing about on this blog was the options backdating scandal, but that was because there were backdating-related issues emerging on virtually a daily basis. Now it is beginning to feel as if all I am writing about is the
Notes From Around the Web
The Kobi Watch: The recent news of the options backdating-related criminal conviction of Gregory Reyes, the former CEO of Brocade Communications, made me wonder what was happening with another former CEO caught up in the backdating brouhaha. When we last checked in on Kobi Alexander (prior post here) the fugitive former head of
Excess D&O Insurance: What’s Up With That?
As average D&O claims severity has increased and accompanying defense expense has escalated in recent years (about which refer here), excess D&O insurance has become an increasingly critical part of D&O claims resolution. Perhaps because of the increasing claims involvement of excess D&O insurance, it seems as if the number of D&O coverage disputes
The Wave Grows: More Subprime Lending Lawsuits
The wave of subprime lending related lawsuits (which I am tracking here) continues to grow. On July 31, 2007, the Lerach Coughlin law firm sued beleaguered home lender American Home Mortgage Investment Corp. (press release here) in a securities class action lawsuit. The suit alleges that American Home is a REIT that
A Week’s Worth of D & O News
I was only away one week, but even in that short time there were many interesting developments in stories I have been following on this blog. Here is a news round-up, in no particular order:
NASDAQ’s Private Portal Approved: In an earlier post (here), I discussed the arrival of private securities markets, where
Tenth Circuit Takes a Look at D & O Policy Rescission
In a July 25, 2007 opinion (here), the Tenth Circuit examined whether misrepresentations in financial statements incorporated by reference in a D & O policy application could serve as a basis for policy rescission under Utah law.
The case involved a D & O policy issued to ClearOne Communications in 2002. In early
Earnings Guidance: Contrasting Perspectives
In a recent post (here), I discussed the recent work of two blue-ribbon groups focused on eliminating “short-termism” and recommending, among other things, the elimination of quarterly earnings guidance. The results of the National Investor Relations Institute’s 2007 Earnings Guidance Practices Survey (press release here, survey results here) suggest that more
Suing the Rating Agencies for the Subprime Mess?
In an earlier post (here), I examined recent academic research questioning whether the rating agencies have played a blameworthy role in the subprime lending industry, and speculating on the rating agencies’ possible litigation exposure. On July 19, 2007, the rating agencies potential litigation risk moved from supposition to reality when a shareholder of