As I have noted in a number of posts (most recently here), the size of securities class action settlements rose significantly in 2018 compared to recent years. But what do the 2018 securities class action settlements look like when broken down according to the lead plaintiffs’ firm involved in the settlement? That is the question answered in a recent report from ISS Securities Class Action Services. The April 3, 2019 report, entitled “The Top 50 of 2018” takes a look at the top 50 plaintiffs’ firms ranked by aggregate size and number of settlements can be found here. Continue Reading Plaintiffs’ Firms Ranked by Total 2018 Securities Suit Settlement Size and Number
Guest Post: Cyber Risk Health Factors Case Study — Technology Alone Can’t Fix Security
In the second part of a three part series, Paul Ferrillo and Christophe Veltsos explain how cyber risk assessments can provide value. Paul is a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice. Chris is a professor in the Department of Computer Information Science at Minnesota State University, Mankato where he regularly teaches Information Security and Information Warfare classes. The first article in their series can be found here. In a forthcoming third article, the authors will address the technical tools side of cyber assessment, as opposed to people/processes/governance. I would like to thank Paul and Chris for their willingness to allow me to publish their article as a guest post. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Paul and Chris’s article is set out below. Continue Reading Guest Post: Cyber Risk Health Factors Case Study — Technology Alone Can’t Fix Security
Frankfurt and Luxembourg
The D&O Diary finished its European itinerary last week with a visit to Frankfurt for an event there, followed by a weekend stopover in Luxembourg before heading home. The pleasant weather I enjoyed earlier in the week in Switzerland abandoned me in Frankfurt, where it rained, but the nice weather reappeared just in time for my weekend visit in Luxembourg. As the pictures below reflect, the pleasant spring weather was just about ideal for my first ever visit to Luxembourg. Continue Reading Frankfurt and Luxembourg
April in Zurich
The D&O Diary’s European assignment continued this week with a stop in Zurich, Switzerland’s largest city and one of the world’s leading financial centers, for meetings and an event there. I was fortunate that the beautiful weather I enjoyed in Lucerne followed me to Zurich. Even though I had many meetings scheduled throughout my time in Zurich, I still did have a little bit of a chance to enjoy the city, as shown in the pictures below. Continue Reading April in Zurich
Guest Post: Six Avoidable Problems Directors Can Have With Their D&O Insurance
In the following guest post, Paul Ferrillo, a partner in the law firm Greenberg Traurig LLP in New York City, takes a look a six recurring problems that directors can have with their D&O insurance and how to avoid them. I would like to thank Paul for allowing me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit an article. Here is Paul’s article. Continue Reading Guest Post: Six Avoidable Problems Directors Can Have With Their D&O Insurance
Springtime in Lucerne
The D&O Diary is on assignment in Europe this week, with a first stop in the Swiss city of Lucerne (or Luzern as it is known to the locals). I had meetings there on Thursday and Friday and then I was fortunate to spend the weekend there as well. I say “fortunate” because the weather over the weekend was dead-solid perfect. Continue Reading Springtime in Lucerne
SEC Awards Two Whistleblowers $50 Million, Including Third Largest Ever Individual Award
On March 26, 2019, the SEC announced that it was awarding two whistleblowers a total of $50 million for providing the agency with information that led to a successful enforcement action. The two awards consisted of an award to one individual of $13 million and an award to a second individual of $37million. The $37 million award is the third largest award in the history of the SEC’s whistleblower program. The SEC’s March 26, 2019 press release announcing the awards can be found here. The SEC’s whistleblower award order can be found here. Continue Reading SEC Awards Two Whistleblowers $50 Million, Including Third Largest Ever Individual Award
Supreme Court: Even One Who Did Not “Make” a False Statement May Still be Subject to Scheme Liability
In its 2011 decision in the Janus Group case, the U.S. Supreme Court held that one who does not “make” a false statement cannot be held liable under section (b) of Rule 10b-5. In an enforcement action brought against him by the SEC, the defendant, Francis Lorenzo, argued that under the Janus case, he could not be held liable under the securities laws for forwarding a misleading email his boss had written because he did not “make” the false statement. The case ultimately made its way to the U.S. Supreme Court. On March 27, 2019, the Court found that even if Lorenzo could not be held liable under section (b) of the Rule because he did not “make” the statement, he could still be held liable under the scheme liability provisions in sections (a) and (c) of the Rule for disseminating the document. The Court’s March 27, 2019 opinion in Lorenzo v. Securities and Exchange Commission can be found here. Continue Reading Supreme Court: Even One Who Did Not “Make” a False Statement May Still be Subject to Scheme Liability
Cornerstone Research: Securities Suit Settlement Size Increased in 2018
Aggregate, average, and median securities class action lawsuit settlement amounts all rose in 2018, according to the latest report from Cornerstone Research. The 2018 total settlement amount of just over $5 billion dollars is substantially higher than the prior year total and in fact is the third-highest total in the past 10 years. The $5 billion total was driven by a small number of very large settlements. The Cornerstone Research report, which is entitled “Securities Class Action Settlements: 2018 Review and Analysis” can be found here. Cornerstone Research’s March 26, 2019 press release regarding the report can be found here. Continue Reading Cornerstone Research: Securities Suit Settlement Size Increased in 2018
Guest Post: Claims Against Directors for Failure to Insure Against Cyber Risk Are More Likely Now
In the following guest post, Francis Kean, Executive Director FINEX Willis Towers Watson, take a look at an interesting and arguably surprising recent U.K. judicial decision in which a supermarket chain was held liable for the unauthorized Internet disclosure of its employees’ personal data. Francis has some interesting observations about the decision’s possible implications as well. A version of this article previously was published on the Willis Towers Watson Wire blog (here). I would like to thank Francis for allowing me to publish his article as a guest post. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Francis’s article: Continue Reading Guest Post: Claims Against Directors for Failure to Insure Against Cyber Risk Are More Likely Now