Tuesday, April 30, 2013 at 11am EDT
Last quarter's loss trends, Say on Pay and Equity Incentive Plan Litigation, and cases like Allergan and News Corp are the focus of our next Quarterly D&O Claims Trends Webinar on TUES APR 30 @ 11am EDT. Join AIGs David Murray, Weil Gotshal's Paul Ferrillo, RT ProExec's Kevin LaCroix, and Advisen's Jim Blinn. This free, one-hour LIVE webcast of securities and other litigation impacting D&O coverage is sponsored by AIG.
Register for this free one-hour webinar at: https://advisen.omnovia.com/register/64521360807229
New securities and business litigation and enforcement actions increased slightly as compared to the fourth quarter of 2012, but remained significantly lower than the annual average of the previous four years. Two important categories, securities class action and securities fraud both experienced slight upticks in the number of total suits as compared to the previous quarter but remained well below the yearly average of the prior four years. Two other important categories, breach of fiduciary duty and derivative shareholder actions saw a slight decrease in the number of new cases as compared to the fourth quarter.
The financial sector remained the top sector in terms of the total number of new securities litigation and enforcement actions in the first quarter. While the numbWer of new events increased slightly from the fourth quarter 2012, the number of settlements and settlement values dropped. For securities class action suits, which had been experiencing a downward trend in the number of settlements, both the number of settlements and settlement values increased as compared to the previous quarter.
This report also contains a special section on "Say-on-Pay", a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act. After an initial flurry of litigation activity and multiple approaches by the plaintiffs' bar in this arena, it appears say-on-pay related lawsuits are running out steam. An increase in activity in equity incentive plan cases (also addressed in the say-on-pay provision), however, may be the next wave of proxy related litigation.