Numerous questions surround the SEC’s new policy requiring enforcement action defendants in “egregious” cases to admit to wrongdoing in order to settle with the agency, rather than simply agreeing to neither admit nor deny the agency’s allegations. As I discussed in a prior post (here), among the questions is the issue of what
Protection for Public Company Directors and Officers: Indemnification and Insurance
In an environment where public company directors and officers face increasing scrutiny and expanding liability exposures, the indemnification and insurance protections available to them are increasingly important. A July 15, 2013 memorandum from the Gibson Dunn law firm entitled “Director and Officer Indemnification and Insurance – Issues for Public Companies to Consider” (here)
D&O Insurance: Notice to Claims Department Required to Satisfy Notice Requirements
Disputes over notice of claim requirements usually involve questions about the timing or content of the notice. A recent notice dispute involving UnitedHealth Group raised neither questions of timing or content; rather, the dispute involved the question of “to whom” the notice must be sent. In an April 25, 2013 opinion (here), District of
Smaller Companies Should Consider Cyber-Liability Insurance
Smaller companies increasingly are the subject of data breaches and those smaller companies “are the number-one target of cyber-espionage attackers,” according to a recent study detailed in a April 24, 2013 CFO.com article entitled “Should You Consider Cyber Insurance?” (here). Smaller companies increasingly are the subject of cyber attacks due to “inadequate security
Towers Watson Releases 2012 D&O Insurance Survey
By now, many readers may have seen the 2012 Towers Watson D&O insurance survey, entitled “Directors and Officers Liability: 2012 Survey of Insurance Purchasing Trends,” which can be here. (I am only belatedly posting a link to the survey now owing to my travel schedule last week, when Towers Watson released the survey report).
ABA Business Law Section’s Corporate Counsel Checklist for Executive Protection
In the August 2012 issue of Business Law Today, the ABA Business Law Section published an article entitled “Training for Tomorrow: Corporate Counsel Checklist for Supervising Creation/Renewal of D&O Protection Program” (here). The article describes the critical components of a comprehensive executive protection program. A detailed description of the article and an
NY Appellate Court: Excess Insurers Off the Hook Where It Can’t Be Determined if Underlying Insurance Exhausted
In the latest of what is now a lengthening line of cases, on June 12, 2012, the New York Supreme Court, Appellate Division, First Department, applying Illinois law, ruled in a coverage case brought by JPMorgan Chase that owing to settlements by underlying carriers in a professional liability insurance program, excess insurers in the program
Guest Post: Dodd Frank, Corporate Investigations and D&O Insurance
One of the hottest current topics in the field of D&O insurance is the question of coverage for costs incurred in connection with regulatory investigations. As discussed in the following guest post from Paul Ferrillo, who is Of Counsel and a senior litigator in the Securities Litigation/Corporate Governance Group of Weil Gotshal & Manges,
Lehman Bankruptcy, Defense Expenses, and D&O Insurance
The September 2008 collapse of Lehman Brothers resulted in the largest bankruptcy filing in U.S. history, as well as an explosion of litigation and regulatory actions and investigations. In the pending bankruptcy proceedings a recent motion by the debtor’s counsel details the massive legal costs accumulating in the various legal proceedings and also raises
Insurance Coverage for Special Litigation Committee Expenses and Other Web Notes and Updates
In an earlier post (here), I wrote about a December 30, 2009 ruling in the MBIA coverage litigation that special litigation committee investigation expenses were covered under a D&O liability insurance policy. As I anticipated, the decision has proven to be controversial.
Two law firms that traditionally act as coverage counsel for D&O