A dispute arising out of the Clifford Chance law firm’s brief attempt to establish a California presence by recruiting a number of partners from the late, lamented Brobeck, Phleger & Harrison firm has resulted in a ruling under New York law on the proper standard to use in allocating loss between covered and uncovered parties
D & O Insurance
Daimler-Chrysler Settles With Its D & O Carriers
By Kevin LaCroix on
Posted in D & O Insurance, International D & O
According to January 2, 2007 news reports (here and here), DaimlerChrysler AG has reached a settlement with its D & O insurers in connection with the $300 million settlement of the securities class action lawsuit that had been filed against the company.
The securities class action lawsuit was filed in May 2002, relating…
Why Aren’t D & O Insurers Better Corporate Governance Monitors?
By Kevin LaCroix on
Posted in Corporate Governance, D & O Insurance
One of the great things about having a blog is that it has brought me into contact with a host of people I might otherwise never have gotten to know. Among the most interesting and colorful people I have met through my blog is Sammy Antar, Crazy Eddie’s cousin, and the author of the White…
Fastow’s Sentence, Future Civil Litigation, and D & O Insurance
By Kevin LaCroix on
Posted in D & O Insurance, Enron
On September 26, 2006, U. S District Judge Kenneth Hoyt sentenced former Enron CFO Andrew Fastow to six years’ imprisonment, a reduction from the ten-year term to which Fastow had agreed in his January 2004 plea agreement. According to news reports (here and here), apparently among the factors that Judge Hoyt relied upon…
Securities Lawsuit Filings Are Down, So What About D & O Rates?
By Kevin LaCroix on
Posted in D & O Insurance
Board Turmoil and D & O Risk
By Kevin LaCroix on
Posted in Corporate Governance, D & O Insurance
Within the last few days, we have witnessed the feuding, dysfunctional H-P Board struggling with the turmoil and adverse publicity arising from its flawed investigation of media leaks. Last week we also saw the forced ouster of Bristol Myers Squibb CEO Peter Dolan. These events follow the removal of the CEOs of some of the…
Four Things to Watch in the World of D & O
By Kevin LaCroix on
Posted in D & O Insurance
The world of directors’ and officers’ liability often seems as if it is in a state of constant change — and it is no wonder, because so many factors affect it: legislation, litigation, volatile securities markets, and the ever-changing global economy. With so many shifting factors and varying dynamics, it can sometimes be difficult to…
More About MBOs and D & O Risk
By Kevin LaCroix on
Posted in D & O Insurance, Private Equity
MBOs: Another Example of Private Funding and D & O Risk
By Kevin LaCroix on
Posted in D & O Insurance, Private Equity
The D & O Diary has previously written (here and here) about the problems and conflicts of interests that can arise from the involvement of private fund investors (private equity firms, hedge funds and buyout firms) in publicly traded companies. In a September 3, 2006 column in the New York Times (here…
PIPEs Financing and D & O Risk
By Kevin LaCroix on
Posted in D & O Insurance, PIPEs Financing
A casual reader of the New York Times business page or the Wall Street Journal might well get the impression that PIPEs (private investments in public equity) financing transactions are the devil’s own handiwork. Both publications have recently run stories fraught with dire tones and ominous insinuantions about PIPEs transactions. The New York Times August…