Securities

Recent Posts

A Securities Litigation Stalwart Takes a Loss
Posted on 8 Nov 2010 by Kevin M. LaCroix

Although the world of electoral politics may seem distant from the directors' and officers' liability arena, there was one development in Tuesday's elections that potentially could affect the D&O claims environment, and it happened... Read More

FDIC Files First D&O Suit of Current Failed Bank Wave
Posted on 12 Jul 2010 by Kevin M. LaCroix

On July 2, 2010, in what is as far as I am aware the first suit by the FDIC against former directors and officers of a failed bank as part of the current wave of bank failures, the FDIC as receiver of IndyMac filed a lawsuit in the Central District... Read More

Fidelity Insurance and the Timing of the Employer's Responsibility for an Employee Defalcation
Posted on 8 Aug 2012 by Kevin M. LaCroix

On August 1, 2011, in a 2-1 decision characterized by a testy but interesting exchange between the majority and the dissent, the Sixth Circuit held that a fidelity policy provided coverage for nearly one million dollars a bank employee stole from client... Read More

Applying Morrison, Court Rejects Toyota Shareholders' Japanese Law Securities Claims
Posted on 14 Jul 2011 by Kevin M. LaCroix

The U.S. Supreme Court's June 2010 decision in Morrison v. National Australia Bank looked like the end of securities claims in U.S. courts on behalf so-called "f-cubed" claimants - that is, foreign shareholders of foreign-domiciled companies... Read More

The Top Ten D&O Stories of 2010
Posted on 5 Jan 2011 by Kevin M. LaCroix

2010 was an eventful year in the world of D&O liability. Congress passed massive financial reform legislation, the Supreme Court issued landmark decisions in important cases and numerous claims emerged as litigation landscape continued to evolve... Read More

Can a D&O Insurer Seek to Recoup Prior Settlement Payments from Its Own Insured?
Posted on 2 Dec 2010 by Kevin M. LaCroix

Settlement is the critical goal in every claim that cannot be resolved otherwise. It terminates the open dispute, it provides the parties with finality, and, perhaps, most importantly, it provides the parties with repose. After a settlement is final... Read More

Delaware Supreme Court: Insured's Payment of Defense Expenses Does Not Trigger Excess Insurer's Payment Obligations
Posted on 18 Sep 2012 by Kevin M. LaCroix

On September 7, 2012, the Delaware Supreme Court, applying California law, held that Intel's excess insurer's defense obligations were not triggered where Intel had settled with the underlying insurer for less than policy limits and had itself... Read More

A Failed Bank, A Lawsuit, and Some Interesting Questions
Posted on 29 Jul 2010 by Kevin M. LaCroix

Though 268 banks have failed since January 1, 2008, there has been relatively little litigation related to the failed banks, as least so far. For example, the FDIC only recently filed its first action against former directors and officers of a failed... Read More

Parts IV and V: How Corporate Officials Can Get A Good Night's Sleep Despite Current SEC Enforcement Trends
Posted on 16 Aug 2012 by Thomas O. Gorman

This is the fourth in a series discussing new trends in SEC enforcement which impact corporate directors and officers and steps that can be taken to avoid future liability. Employees, the company and insider trading The enforcement of insider trading... Read More

Thoughts About WikiLeaks and Executive Liability
Posted on 3 Dec 2010 by Kevin M. LaCroix

Though it quickly recovered, Bank of America's share price declined earlier this week on speculation that the company is the bank whose internal documents WikiLeaks intends to post on the Internet at some future date. According to news reports... Read More

Can Separate Settlements Improve the Securities Suit Settlement Process?
Posted on 18 Apr 2012 by Kevin M. LaCroix

The negotiated resolution of securities class action lawsuits - and absent dismissal, there is rarely any other types of securities suit resolution - is always complicated and occasionally messy, and often involves inefficiencies and sometimes produces... Read More

Being a Great (Compliance) Leader
Posted on 20 Jan 2011 by Thomas Fox

In the most recent issue of the Harvard Business Review , writers Linda Hill and Kent Lineback posed the question, " Are You a Good Boss - Or a Great One ?" In this article they explore what they believe to be some of the imperatives of going... Read More

Board Members and Prudent Discharge of Duties under the FCPA
Posted on 25 Aug 2010 by Thomas Fox

Monday's FCPA Blog post wrote about what it called a "compliance donnybrook" inside the company China Northeast Petroleum. The facts of this melee are straight-forward, in July, the head of the Board of Director's Audit Committee... Read More

D&O Insurance: Disgorgement of Contingent Commissions Not Covered "Loss"
Posted on 10 Dec 2010 by Kevin M. LaCroix

An insurance broker's settlement of claims for disgorgement of undisclosed contingent commissions does not represent covered loss under a combined lines professional liability insurance policy, according to a December 3, 2010 decision of the Illinois... Read More

D&O Insurers Relieved of Advancing Allen Stanford's Criminal Defense Fees
Posted on 14 Oct 2010 by Kevin M. LaCroix

Stanford Financial's D&O insurers do not have to continue to advance the criminal defense attorneys' fees of R. Allen Stanford and two other former Stanford related individuals, according to an October 13, 2010 ruling by Southern District... Read More