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...
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...
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...
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 ,
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...
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...
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...
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...
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...
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 “...
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...
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 – “...
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...
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...
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...