Recent Posts

N.Y. Intermediate App. Ct. Allows D&O Insurers to Assert Public Policy Defense in Long-Running Bear Stearns Coverage Action
Posted on 20 Jan 2015 by Kevin M. LaCroix

In the latest round in the long-running battle over whether there is D&O insurance coverage for the amounts Bear Stearns paid in settlement of an SEC enforcement action for alleged market timing, the D&O insurers may have finally found an issue... Read More

The Top Ten D&O Stories of 2014
Posted on 6 Jan 2015 by Kevin M. LaCroix

The year just ended was an eventful one in the world of directors’ and officers’ liability. Many of the year’s key events represented significant changes in the D&O liability environment. Many of the changes during 2014 have important... Read More

D&O Insurance: Liberalization Endorsement Allows Insureds to Rely on New Policy Form’s Enhanced Insured vs. Insured Exclusion Carve-Back
Posted on 30 Jun 2014 by Kevin M. LaCroix

On June 19, 2014, in a case involving so many unusual coverage issues that it seems more like a law school exam question than an actual coverage dispute, New York (New York County) Supreme Court Judge Melvin Schweitzer, applying New York law, granted... Read More

Fights Worth Watching: Lehman Execs Spar over D&O Insurance, SEC Pursues Chinese Co. Auditor
Posted on 12 Sep 2011 by Kevin M. LaCroix

A group of former executives of a Lehman Brothers subsidiary is seeking to block the bid by senior Lehman executives to use $90 million of the remaining D&O insurance proceeds to settle the cases pending against them. As discussed here , on August... Read More

D&O Insurance: Coverage for SafeNet Options Backdating Securities Suit Settlement Denied
Posted on 15 Sep 2011 by Kevin M. LaCroix

The options backdating scandal may now be ancient history, but questions surrounding insurance coverage for the scandal's consequences apparently continue to live on. In a September 9, 2011 opinion applying Maryland law, Southern District of New... Read More

Survey: Existing and Potential Bank Directors Unwilling to Serve Due to Fear of Personal Liability
Posted on 30 Apr 2014 by Kevin M. LaCroix

Banking industry commentators have long contended that aggressive efforts by the FDIC and others to hold bank developers liable is having a chilling effect on the willingness of existing and potential directors to serve on bank boards. An April 2014 American... Read More

Failed Bank Battles: Is D&O Insurance Coverage the Real Frontline?
Posted on 13 Sep 2011 by Kevin M. LaCroix

A recent negotiated resolution of an FDIC failed bank lawsuit suggests disputes over D&O insurance coverage may represent the real frontline in the failed bank litigation wars. The compromise was reached in the lawsuit the FDIC only recently filed... Read More

When the D&O Insurer Denies Coverage
Posted on 7 Aug 2013 by Kevin M. LaCroix

A D&O insurer’s denial of coverage for a claim against corporate officials can leave the individuals in a very difficult position, as illustrated by a recent high-profile case in the U.K. According to an August 4, 2013 Financial Times article... Read More

The Short-Termism Debate: Are There D&O Liability Issues Involved, Too?
Posted on 26 Aug 2015 by Kevin M. LaCroix

In recent months, commentators from across the political spectrum, largely in response to perceived excesses of activist investors, have called for changes to discourage “ short-termism ” – that is, the perceived excessive focus of businesses... Read More

Ninth Circuit: Embezzler Executive’s Knowledge Can Be Imputed to Company in Innocent Third Party-Filed Securities Suit
Posted on 28 Oct 2015 by Kevin M. LaCroix

For purposes of determining the scienter of a corporate entity defendant under the federal securities laws, a company’s executives’ knowledge generally is imputed to company. There is an exception to these general principles – the “... Read More

D&O Insurance Coverage in the Wake of the IndyMac Bank Failure
Posted on 29 Aug 2011 by Kevin M. LaCroix

In an opinion that provides an interesting glimpse of a complex D&O insurance program, on August 24, 2011, Central District of California Judge R. Gary Klausner granted the motions to dismiss of the insurance company defendants in an action that... Read More

Georgia Federal Court Rules FIRREA Blocks Jurisdiction for Failed Bank’s D&O Insurer’s Declaratory Judgment Action
Posted on 12 Mar 2014 by Kevin M. LaCroix

As part of our beat here at The D&O Diary , we have to read a lot of judicial decisions. We are well acquainted with the fact that court rulings vary quite a bit, but every now and then we read an opinion that makes us stop and say – “... Read More

The Impact of the JOBS Act on D&O Liability
Posted on 3 Apr 2012 by Kevin M. LaCroix

On March 27, 2012, the U.S. House of Representatives passed the Jumpstart Our Business Startups Act (of the JOBS Act as it is more popularly known). President Obama is expected to sign the Act shortly. The Act is intended to facilitate capital-raising... Read More

The Top Ten D&O Stories of 2011
Posted on 4 Jan 2012 by Kevin M. LaCroix

The year just ended was eventful in many ways. Earthquakes, hurricanes, tornadoes, floods, blizzards and droughts were scattered across the globe, and political unrest shook many countries. In a year filled with such significant developments, events... Read More

D&O Insurance: No Coverage for Attorney Fee Award to Underlying Plaintiffs if Underlying Claim Not Covered
Posted on 29 Jul 2013 by Kevin M. LaCroix

Does a D&O insurance policy provide coverage for attorneys’ fees awarded in settlement of a breach of contract class action? That was the question before the court in an insurance coverage action brought by the Screen Actors Guild (SAG) against... Read More