The D&O Diary

A Periodic Journal Containing Items Of Interest From The World Of Directors & Officers Liability, With Occasional Commentary

Blog Authors

Latest from The D&O Diary

One phenomenon I have noted on this blog is the rise of event-driven securities class action lawsuits. Rather than being based on alleged or financial misrepresentations, as has traditionally and historically been the case in securities suits, these suits follow in the wake of and are based on adverse events in the company’s operations. A recent high-profile example of an event-driven suit is the securities class action lawsuit that was filed against Arconic in…
The threat of cyberscams in the form of what has been called “social engineering fraud” or “payment instruction fraud” has become pervasive. In these swindles, imposters posing as senior corporate executives or company vendors direct company personnel to transfer funds to accounts that the imposters control. Losses from these frauds can be substantial, and, as I have noted on prior posts on this site, the insurance coverage questions these losses present can be challenging. Earlier…
As companies experienced cyber-related incidents, they have sought coverage for their losses under a variety of different kinds of insurance policies. As discussed in the following guest post, courts have struggled to address the coverage issues these claims present. The article’s author is Peter Selvin, a member of TroyGould PC, where he practices in the areas of civil litigation and insurance coverage and recovery. A version of this article previously appeared in the Los Angeles…
Last week, the Wall Street Journal reported that this past spring Google had exposed thousands of the Google+ social network users’ private data and then opted to withhold disclosure of the incident because of concerns that doing so would attract regulatory scrutiny and harm the company’s reputation. Following the news reports, questions immediately were asked about a possible SEC investigation of the incident. And now, these developments have drawn two new securities class action lawsuits in…
For some time now, some observers had been predicting that we would be seeing a bunch of data breach-related securities class action lawsuits, but the predicted wave never seemed to materialize. However, with a recent uptick in these kinds of cases, that could be changing. On October 8, 2018, in the latest of these kinds of lawsuits to be filed, a plaintiff shareholder filed a securities class action lawsuit against China-based Huazhu Group. As discussed…
One of the most important recent legal and regulatory developments has been the elevation of privacy rights and concerns. Privacy issues are related to but distinct from cybersecurity issues and concerns, because privacy is concerned about more than just keeping data free from unauthorized intrusion. Privacy concerns also involve how data is used and to what kinds of controls the persons whose rights are affected have over the data. As more and more businesses gather…
The rise of financial technology (fintech) is rapidly changing the financial services industry, in the U.S., in the U.K. and elsewhere. But with the rise of fintech also has come increasing regulation. Among the regulatory regimes applicable to fintech sector is the EU’s Payment Services Directive (PSD), designed among other things to provide certain consumer protections. A Revised Payment Services Directive (PSD2) came into force on January 13, 2018. In the following guest post, Karen…
Claims made policies provide coverage for claims first made during the policy period, but only if the insurer is provided with timely notice of claim. Most claims made policies allow policyholders to provide insurers with a notice of circumstances that may give rise to a claim in the future, in order to make the date of the notice of circumstances as the claims made date for any future claims. A recent Sixth Circuit considered a…
One of the most-watched corporate and securities litigation trends in recent years has been the incidence of D&O claims after companies experience data breaches. Although there have been a number of high profile claims along the way, the volume of data breach-related D&O claims has never quite lived up to the hype. Just the same, these kinds of claims have continued to be filed. The most recent case is a securities class action lawsuit that…
In the latest development in nearly decade-long legal battle, a New York intermediate appellate court has held in light of the U.S. Supreme Court’s 2017 decision in Kokesh v. SEC that amounts Bear Stearns paid under an SEC disgorgement order represent a “penalty” for which coverage is precluded under the bank’s insurance policy. This ruling, which overturned a trial court order holding that the disgorgement amount was covered, represents a substantial reversal of fortune for…