Corporate scrutiny looms
Directors and officers liability insurers and buyers have taken notice of the U.S. Justice Department’s greater emphasis on individual accountability in cases of corporate wrongdoing. In a memorandum, Deputy Attorney General Sally Quillian Yates detailed how Justice Department attorneys are to approach civil corporate matters “to hold to account the individuals responsible for illegal corporate […]
‘Yates memo’ outlines Justice Department expectations of federal prosecutors
The U.S. Justice Department’s new playbook on individual responsibility in corporate wrongdoing, known as the “Yates memo,” is a seven-page document written by Deputy Attorney General Sally Quillian Yates. “Fighting corporate fraud and other misconduct is a top priority of the Department of Justice. Our nation’s economy depends on effective enforcement of the civil and […]
Volatile stock market could fuel securities class actions
Stock market volatility is among factors that could fuel the filing of securities class action litigation. New York-based NERA Economic Consulting said in a report last week that federal securities class action cases totaled 234 in 2015, an 8% increase from 2014’s 216 and the highest level since 2008. The securities class actions have increased […]
Delaware law helps corporations avoid multiforum litigation headaches
Of all the strategies used by firms to diminish the number of stockholder derivative lawsuits, forum selection is likely to be most successful and effective, experts say. Legislation approved by Delaware lawmakers last year validates that Delaware corporations can adopt bylaws designating the state’s courts as the exclusive forum for shareholder litigation. The same law […]
Cyber cover blended with professional liability
Professional liability policyholders are enjoying enhanced coverage, and some are seeing significant rate cuts as the soft property/casualty market persists. In particular, cyber risk coverage is being blended into errors and omissions policies as professionals grow increasingly wary of cyber-related exposures. The move to blend cyber coverage into E&O policies, for an increased premium, follows […]
Directors can’t plead ignorance as cyber exposures multiply
Information and a solid response plan are essential for corporate directors and officers as cyber liability issues evolve. “This is an extremely dynamic risk area. There’s always more learning we all have to do,” said Rob Yellen, executive vice president of FINEX North America at Willis Towers Watson P.L.C. in New York. “How boards will […]
Are we there yet? Are we there yet? Are we there yet?
