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Environmental Liability-Related Securities Suit Filed against DuPont Spin-off Chemours

By Kevin LaCroix on October 13, 2019

As I have previously noted on this blog, one recurring source of securities class action litigation exposure for publicly traded companies is the companies’ underlying environmental liabilities. In the latest example of this type of litigation, a plaintiff shareholder has now filed a securities suit against The Chemours Company, a chemical company that spun out of E.I. du Pont de Nemours and Company (“DuPont”) in July 2015. One of the extraordinary things about the new…

The D&O Diary

Guest Post: India: The Consumer Protection Act, 2019 – Exposures & Liability Insurance Protection

By Kevin LaCroix on October 9, 2019

In the following guest post, Umesh Pratapa takes a look at the new Indian Consumer Protection Act, 2019. As Umesh discusses below, the Act not only has important implications for the rights of consumers, but it also has important liability insurance, product liability insurance, and professional liability insurance implications in Indian as well. Umesh’s article was originally published in BimaQuest September 2019 issue. Reproduced with kind permission of the Publisher, National Insurance Academy, Pune, India.…

The D&O Diary

News Flash: Insurer That Paid Full Policy Limits Did not Breach the Policy or Act in Bad Faith

By Kevin LaCroix on October 8, 2019

D&O insurance policyholders sometimes bridle when the insurers take steps to try to rein in burgeoning defense expense. In that situation, the D&O insurers will often try to remind the policyholder that because defense expense erodes the limit of liability, it is in everyone’s interest for defense expense to be monitored closely. An unusual coverage action in the Western District of New York reversed the usual concerns about insurer defense cost control. The policyholder sued…

The D&O Diary

Caremark Duties Include Duty Not Only to Establish Oversight Processes but Also to Monitor Them

By Kevin LaCroix on October 7, 2019

Earlier this year, in Marchand v. Barnhill, the Delaware Supreme Court underscored that boards that fail to establish oversight procedures for their company’s mission critical functions can be held liable for breach of their Caremark duties. In an October 1, 2019 decision in the Clovis Oncology Derivative Litigation, the Delaware Chancery Court provided further perspective on directors’ potential liability for breaches of the duty of oversight. The Chancery court held, citing Marchand, that boards not…

The D&O Diary

Plaintiffs’ Lawyers, Merger Objection Litigation, and Mootness Fees

By Kevin LaCroix on October 6, 2019

In a prior post, I noted recent academic research detailing the rise of mootness fee dismissals in federal court merger objection litigation. In these merger-related lawsuits, the plaintiffs agree to dismiss their suit based on the defendants’ agreement to make changes to the merger documents – thus, making the merger suit moot – and to pay the plaintiffs’ attorneys a mootness fee. An October 4, 2019 Law 360 article entitled “Plaintiffs Firms Follow Easy…

The D&O Diary

Data Breach-Related Securities Suit Filed Against Capital One

By Kevin LaCroix on October 3, 2019

In the latest securities class action lawsuit to be filed against a company that has experienced a data breach or other cybersecurity incident, a plaintiff shareholder has filed a securities suit against Capital One in connection with the company’s recent massive data breach. While there have been a number of data breach-related securities suits before, there are some unique features of the Capital One situation that make it distinctive and interesting, as discussed below. The…

The D&O Diary

Guest Post: Can a Fully Executed Contract be Unenforceable?

By Kevin LaCroix on September 30, 2019

In the following guest post, Richard M. Leisner, a Senior Member in the Trenam law firm in Tampa, takes a look at an unusual and interesting recent decision from the Delaware Chancery Court, Stacey Kotler v. Shipman Associates, LLC (here). Regardless of where you sit, this decision is worth consideration, as the parties had a fully executed stock purchase agreement yet as a result of the court’s decision the intended beneficiary came up…

The D&O Diary

Facebook Privacy-Related Securities Suit Dismissed Without Prejudice

By Kevin LaCroix on September 29, 2019

Two of the most prominent examples of the rise of privacy-related securities class action lawsuits are the Cambridge Analytica scandal-related suit filed against Facebook in March 2018, and the Earnings Miss/GDPR-readiness and compliance-related securities suit filed against Facebook in July 2018. These two lawsuits were ultimately consolidated. In an interesting and detailed September 25, 2019 order (here), Northern District of California Edward J. Davila granted without prejudice the defendants’ motions to dismiss the…

The D&O Diary

Percentage of Securities Suits Involving Opt-Outs Increased in Most Recent Years

By Kevin LaCroix on September 29, 2019

Opt-outs “remain a small yet significant part of the overall securities class action landscape,” according to a recently updated Cornerstone Research report written in conjunction with the Latham & Watkins law firm. The report, entitled “Opt-Out Cases in Securities Class Action Settlements” (here) notes that the opt-out rate has more than doubled in the most-recent four year period and that opt-outs remain more likely in larger dollar settlements. Cornerstone Research’s September 25, 2019…

The D&O Diary

Guest Post: Classifying Gig Economy Workers under Changing California Law

By Kevin LaCroix on September 26, 2019

As many readers undoubtedly are aware, California’s governor recently signed into law legislation that would re-classify app-based workers as “employees” rather than as “independent contractors. As discussed below in a guest post written by John M. Orr and Jully Y. Rojas, these recent changes in California law could have national significance. The changes could have significant Employment Practices Liability Insurance implications as well. John is a Director in Willis Towers Watson’s FINEX (Financial, Executive &…

Kevin LaCroix

Kevin LaCroix Blogs

Blog Authors

Environmental Liability-Related Securities Suit Filed against DuPont Spin-off Chemours

Guest Post: India: The Consumer Protection Act, 2019 – Exposures & Liability Insurance Protection

News Flash: Insurer That Paid Full Policy Limits Did not Breach the Policy or Act in Bad Faith

Caremark Duties Include Duty Not Only to Establish Oversight Processes but Also to Monitor Them

Plaintiffs’ Lawyers, Merger Objection Litigation, and Mootness Fees

Data Breach-Related Securities Suit Filed Against Capital One

Guest Post: Can a Fully Executed Contract be Unenforceable?

Facebook Privacy-Related Securities Suit Dismissed Without Prejudice

Percentage of Securities Suits Involving Opt-Outs Increased in Most Recent Years

Guest Post: Classifying Gig Economy Workers under Changing California Law

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