The D&O Diary

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

Blog Authors

Kevin LaCroix

Latest from The D&O Diary

The D&O Diary

Consumer Products Company Hit with COVID-19-Related Securities Suit

By Kevin LaCroix

September 19, 2021

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In my recent roundup of key concerns in the world of directors’ and officers’ liability, I discussed the COVID-19-related litigation phenomenon, commenting that notwithstanding the lapse of time since the coronavirus’s initial outbreak there would likely be further pandemic-related lawsuits yet to come. As if to confirm the suggestion, last week a shareholder plaintiff filed a COVID-19 related securities class action lawsuit against the actress Jessica Alba’s personal care consumer products company, The Honest Company.…

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Guest Post: Heating Up: SPAC Climate Tech Companies and Underwriting Considerations

By Kevin LaCroix

September 14, 2021

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Sarah M. Abrams, Esq. As I noted in my recent survey of key directors’ and officers’ liability issues, one of the most significant recent developments in the financial markets has been the meteoric rise of special purpose acquisition companies (SPACs). In the following guest post, Sarah Abrams, Director, Management Liability Claims at Markel, takes a look at the SPAC phenomenon and considers the underwriting implications, particularly with respect to climate tech companies. I would like…

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What to Watch Now in the World of D&O

By Kevin LaCroix

September 6, 2021

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Every year after Labor Day, I take a step back and survey the most important current trends and developments in the world of Directors’ and Officers’ liability and insurance. This year’s review is set out below. As the following discussion shows, this is a particularly eventful time in the world of D&O. Will the Number of Federal Court Securities Class Action Lawsuit Filings Continue to Decline Relative to the Heightened Filing Levels Seen During…

The D&O Diary

Coming Soon: Sunday Arts

By Kevin LaCroix

August 28, 2021

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The Tower of Babel by Pieter Brueghel the Elder, at the Kunsthistorisches Museum in Vienna. The purpose of this post is to announce a new feature I will be introducing to this site in September. The reason I am announcing the new feature in advance is to try to make the intention of the new feature clear from the outset, and also to let readers know that the new feature – which I am calling…

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Cornerstone Research: Bankruptcy Filings Returned Closer to Historic Levels in 1H21

By Kevin LaCroix

August 25, 2021

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There were more U.S. bankruptcy filings in 2020 than in any year since the global financial crisis, but the number of bankruptcy filings in the first half of 2021 returned closer to historical levels, according to a new report from Cornerstone Research. The report, entitled “Trends in Large Corporate Bankruptcy and Financial Distress: Midyear 2021 Update,” looks at bankruptcy filings involving private and public companies with assets over $100 million. The report can be found…

The D&O Diary

SEC Files COVID-19-Related Enforcement Suit Against Biotech Firm

By Kevin LaCroix

August 23, 2021

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As the pandemic has progressed and as time has passed, one question I am regularly asked is whether we will continue to see COVID-19 related legal actions being filed. If the latest SEC action is any indication, we have not yet seen the last of new COVID-19-related suit filings. On August 17, 2021, the agency filed a civil enforcement action against an Ohio biotech firm claiming that the firm made false claims about one of…

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Guest Post: Cybersecurity Incident and Litigation Review 2021

By Kevin LaCroix

August 10, 2021

John Cheffers In the following guest post, John Cheffers analyzes the data relating to cybersecurity incidents at companies listed on Nasdaq and New York Stock Exchange. John is Associate Counsel and Director of Research at Watchdog Research. I would like to thank John for allowing me to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact…

The D&O Diary

Cornerstone Research: Securities Suit Filings Declined in Year’s First Half

By Kevin LaCroix

July 28, 2021

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Largely due to a “substantial reduction” in the number of merger objection lawsuit filings, as well as a decline in the number of Section 11 and 1933 Act securities class action filings, the number of federal and state court securities class action lawsuits filed in the first six months of 2021 “dropped considerably” compared to the second half of 2020, according to a new report from Cornerstone Research. Filings of core Section 10(b) suit filings…

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A New COVID-19-Related D&O Lawsuit Variant

By Kevin LaCroix

July 26, 2021

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As readers of this blog know, from the very early days of the coronavirus outbreak COVID-19 related D&O lawsuits have been filed. Just as there have been new variants of the virus itself over the course of the pandemic, there have also been variants of the D&O lawsuits. The most recent variant of the COVID-19-related D&O lawsuit is the Delaware Chancery Court complaint filed earlier this month, in which the plaintiff in the derivative action…

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SEC Files COVID-19-Related Enforcement Action Against Digital Health Firm

By Kevin LaCroix

July 8, 2021

Even though the worst of the pandemic crisis in the U.S. appears, at least for now, to be past, the threat of COVID-19-related claims continues. In the latest example of the continuing COVID-19-related claim threat, the SEC has initiated a COVID-19-related enforcement action against a California-based digital health care company that had made claims early in the coronavirus outbreak about the company’s ability to profit from the outbreak. The SEC’s new action is a reminder…