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Join the Securities Litigation and Enforcement Group on LinkedInDelaware Court Holds D&O Insurance Covers Fraudulent Transfer Claim Settlement | The D&O Diary
In the latest development a long-running D&O insurance coverage dispute, a Delaware Court has held that Verizon’s D&O insurance program covers the company’s $95 million settlement of a bankruptcy Trustee’s fraudulent transfer claim. In reaching this conclusion, the Court held, among other things, that the fraudulent transfer claim was a “Securities Claim” within the meaning […]
In Lieu of D&O Insurance, Musk Agrees to Provide Tesla with “Coverage” | The D&O Diary
On April 28, 2020, Tesla filed with the SEC an amendment to its annual 10-K filing (here). The amendment addresses a number of corporate governance and executive compensation issues. In a section of the filing with the heading “Director Independence,” the company discloses that: Tesla determined not to renew its directors and officers liability insurance […]
Coronavirus and D&O Insurance: An Interim Update | The D&O Diary
Much has changed since I published my first coronavirus-related post a month ago. The number of confirmed cases and of deaths has soared. Much of the country is now on lockdown. School, work, business — so much of basic social and economic activity has stopped. Much has changed in the D&O arena as well. There […]
The Top Ten D&O Stories of 2019 | The D&O Diary
The liability environment for directors and officers is always in a state of change, but 2019 was a particularly eventful year in the D&O liability arena, with important consequences for the D&O insurance marketplace. The past year’s many developments have significant implications for what may lie ahead in 2020 – and possibly for years to […]
Does a Directors and Officers Insurance Policy Cover the Settlement of Criminal Charges? | Insurance and Reinsurance Disputes Blog
Directors and Officers (“D&O”) insurance policies cover individuals and entities for a wide variety of claims for “wrongful acts.” Many D&O policies provide coverage for claims based on criminal proceedings. When criminal charges are settled against corporations and officers, very often the settlement includes fines, penalties, cost of investigation and other payments. Are these payments […]
D&O Insurance: Problems with the Prior Notice Exclusion | The D&O Diary
Let’s say your client has been served with a new D&O lawsuit. Based on what you know about the events that led up to the lawsuit, you are genuinely unsure whether the claim was first made earlier, or not until the lawsuit was filed. Just to complicate things further, during the last renewal cycle, the […]
“Increasingly Likely” Climate Change Liability Risks | The D&O Diary
… In connection with the event, on July 11, 2019 the Clyde & Co law firm published an excellent, comprehensive paper on climate change developments and risks, entitled “Climate Change: Liability Risks for Businesses, Directors and Officers – The Coming Wave of Litigation” (here). This paper provides an overview of the challenges that businesses face […]
Why Corporate America Needs a Strong D&O Insurance Market | The D&O Diary
It does not take a psychic to understand the title of this article. But maybe it takes one more phrase to make the title complete: “because of the increase in securities litigation, the increase in enforcement activity by the SEC, Cybersecurity issues (and their regulatory issues) and the general uncertainties of the political environment in […]
D&O Insurance: Policy Wording Matters | The D&O Diary
Everyone involved in any way in D&O insurance transactions has seen an insurance buyer choose to buy a policy that while less expensive provides narrower coverage. Sometimes the price difference might be slight, sometimes the difference could be significant. But the fact is, the most expensive policy is the one that doesn’t provide coverage when […]
The Top Ten D&O Stories of 2015 | The D&O Diary
It was an eventful year in the world of directors’ and officers’ liability in 2015. Many of the year’s key events significantly changed the D&O liability environment, while other developments during the year could alter the D&O insurance marketplace itself. Many of 2015’s developments have important implications for 2016 – and possibly for years to […]