Challenging Consequences: The Government’s Requirement for Wrongdoing Admissions in Civil Fraud Suits | The D&O Diary

In one of the more troublesome recent developments for corporate officials who find themselves targeted by government investigations, both the U.S. Department of Justice and the Southern District of New York U.S. Attorney’s Office have made it clear that as part of the settlement of civil fraud actions, the governmental authorities intend to seek both admissions of misconduct as well as sanctions against the corporate executives involved. These developments are not only troublesome in and of themselves but also for the collateral consequences they could have for related proceedings. In addition, the admissions could have important implications for the continued availability of D&O insurance for the companies and executives involved.

via Challenging Consequences: The Government’s Requirement for Wrongdoing Admissions in Civil Fraud Suits | The D&O Diary