September is here. Labor Day has come and gone. Time to put away the swim trunks, parasols, flip flops, bungee cords, ukuleles, sun screen, boomerangs, bongos, snorkels, vorpal blades, and unicycles, and get back to work. Yes, it is time to answer all those emails and return all of those phone messages. And most importantly of all, it is time to catch up on what has been happening in the world of directors’ and officers’ liability and insurance. Here is what happened while you were out.
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collective action settlements
Dutch Court Declares Largest-Ever European Investor Claims Settlement Binding
On July 13, 2018, the Amsterdam Court of Appeals finally approved the €1.3 billion ($1.5 billion) settlement of a series of shareholder claims against Fortis in the wake of the global financial crisis. The settlement, which had first been announced in March 2016 by Ageas, Fortis’s successor in interest, faced a number of judicial objections and concerns, resulting in changes to the settlement as originally proposed. According to a July 27, 2018 Law 360 article by Jonathan Richman of the Proskauer law firm and Ianika Tzankova of Tilburg University (here), the court’s recent approval “again shows” that the Dutch settlement procedure “remains a viable settlement vehicle for companies wishing to resolve transnational problems on a classwide, opt-out basis.” On the other hand, claimants’ attorneys have questioned whether the court’s rulings on class distribution and attorneys’ fees could discourage institutional investors from seeking to use the Dutch settlement procedures.
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Report: Wage Law Violations Result in Billions of Dollars in Total Payouts
Violations of statutory wage and hour requirements represent a very big problem for corporate employers. Cumulative payouts in private lawsuits and government enforcement for wage payment violations run into the billions, according to a new report from an organization called Good Jobs First. The June 5, 2018 report, entitled “Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages” (here), details the findings from an analysis of private collective actions since 2000 and regulatory enforcement actions in eight states, concluding that the litigation and enforcement activity has involved thousands of claims and resulted in billions of dollars in payouts. But, as detailed below, as a result of a recent U.S. Supreme Court decision, the trend lines could take a different direction in the future. The June 5, 2018 press release from Good Jobs First about the report can be found here. The background data and detailed analysis reflected in the report can be found here.
Continue Reading Report: Wage Law Violations Result in Billions of Dollars in Total Payouts