Kevin LaCroix

Firm/Organization: Kevin LaCroix

Latest Articles

Delaware Supreme Court: What is a “Securities Claim”?

November 5, 2019

Most public company D&O insurance policies provide coverage for the corporate entity only for “Securities Claims.” But what constitutes a “Securities Claim”? That is the question the Delaware Supreme Court addressed in a recent appeal of an insurance coverage dispute in which a bankruptcy trustee had sued Verizon for breach of fiduciary duty, unlawful payment of a dividend, and violation of the uniform fraudulent transfer act. The trial court had entered summary judgment for Verizon,…

The D&O Diary

Supreme Court to Consider SEC’s Authority to Seek and Obtain Disgorgement

By Kevin LaCroix

November 3, 2019

In its June 2017 decision in Kokesh v. SEC (discussed here), the U.S. Supreme Court held that disgorgement in an SEC enforcement action represents a “penalty,” and therefore a SEC enforcement action claim for disgorgement is subject to a five-year statute of limitation. In reaching this decision, the Court emphasized (in footnote 3 to the opinion) that it was only deciding the statute of limitations issue, and was emphatically not reaching the larger issue…

The D&O Diary

Guest Post: Securities Class Period Selection Deserves Greater Scrutiny

By Kevin LaCroix

October 31, 2019

The length of the class period is one of the most significant variables in defining the make-up of the plaintiff class in securities class action litigation. As discussed in the following guest post from Nessim Mezrahi, the length of the class period not only affects the aggregate damages of the class but it also could be a key factor in the selection of the lead plaintiff. As a result, Mezrahi suggests, the length of the…

The D&O Diary

Australian Securities Class Action Suit Reaches Judgment for the First Time

By Kevin LaCroix

October 30, 2019

Securities class action lawsuits have been an important part of the litigation scene in Australia for many years. But even though the current class action procedural regime has been in place since 1992, no Australian securities class action lawsuit ever went all the way to judgment – that is, no case ever went to judgment until last week. On October 24, 2019, the Federal Court of Australia issued a post-trial Order in the TPT Patrol…

The D&O Diary

Securities Suit Arising From Climate Change-Caused Conditions Hits Utility

By Kevin LaCroix

October 29, 2019

Once again, wildfires are raging across the length of California, from San Francisco to Los Angeles. Once again, the electricity transmission facilities of PG&E are thought to have caused or contributed to at least some of the wildfires. And once again, in the wake of the wildfires, shareholders have launched a securities class action lawsuit against company executives. As discussed below, the new lawsuit is the latest example of the way in which transformative changes…

The D&O Diary

Connecticut State Court Knocks Out Post-Cyan Securities Act Liability Action

By Kevin LaCroix

October 28, 2019

In the wake of the U.S. Supreme Court’s March 2018 Cyan decision, in which the Court affirmed that state court’s retain concurrent jurisdiction for liability action under the ’33 Act, plaintiffs’ lawyers have initiated a number of Section 11 actions in the courts of a number of states. This new wave of state court Securities Act lawsuits is now making its way through the courts. As the cases have progressed, in some instances the…

The D&O Diary

Zendesk Hit with Data Breach-Related Securities Suit

By Kevin LaCroix

October 27, 2019

In the latest example of a securities class action lawsuit arising out of data breach or other cybersecurity incident, on October 24, 2019, a plaintiff shareholder filed a securities class action lawsuit against California-based software company Zendesk. The lawsuit follows after the company announced disappointing second quarter financial results in July and then announced in early October that customer account information had been accessed. The lawsuit is most recent in a series of lawsuits in…

The D&O Diary

The SEC Triples Down on its Cryptocurrency Crackdown

By Kevin LaCroix

October 24, 2019

In a series of recent actions, the SEC has demonstrated its aggressive approach toward cryptocurrency regulation and enforcement. In the following guest post, John Reed Stark, President of John Reed Stark Consulting and former Chief of the SEC’s Office of Internet Enforcement, takes a detailed look at the SEC’s recent actions and considers the actions’ implications. A version of this article originally appeared on Securities Docket. I would like to thank John for his willingness…

The D&O Diary

Do D&O Insurance Policyholders Need Local Policies in Foreign Jurisdictions?

By Kevin LaCroix

October 23, 2019

Most primary D&O insurance policies are written on a global basis, meaning that the policy’s coverage will respond to claims wherever they arise, anywhere in the world. However, in recent years, as a result of tax, regulatory, indemnification, and currency questions, both insurance buyers and insurers have become concerned about the potential need for companies to have locally admitted policies in place in foreign jurisdictions where the companies have operations. The question about whether or…

The D&O Diary

Plaintiffs Argue District Court Lacked Authority to Set Aside Their Mootness Fee Settlement

By Kevin LaCroix

October 22, 2019

As I have detailed in prior posts, in the latest variant in the merger objection litigation game, the plaintiffs agree to dismiss their lawsuit after the defendant companies make additional disclosures and agree to pay the plaintiffs’ counsel a “mootness fee.” The absence of any court involvement in the case resolution makes this an attractive alternative for the plaintiffs’ lawyers. However, at least one court recently intervened in order to upset this cozy game.…

Kevin LaCroix

Delaware Supreme Court: What is a “Securities Claim”?

Supreme Court to Consider SEC’s Authority to Seek and Obtain Disgorgement

Guest Post: Securities Class Period Selection Deserves Greater Scrutiny

Australian Securities Class Action Suit Reaches Judgment for the First Time

Securities Suit Arising From Climate Change-Caused Conditions Hits Utility

Connecticut State Court Knocks Out Post-Cyan Securities Act Liability Action

Zendesk Hit with Data Breach-Related Securities Suit

The SEC Triples Down on its Cryptocurrency Crackdown

Do D&O Insurance Policyholders Need Local Policies in Foreign Jurisdictions?

Plaintiffs Argue District Court Lacked Authority to Set Aside Their Mootness Fee Settlement

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