Securities Litigation and D&O Insurance: Do You Really Know the Exposure?
- An Advisen Special Report
- (February 25, 2009)
On the surface, securities litigation in 2008 seemed little different than 2007 but Advisen research discovered significant new challenges to corporate directors and the D&O insurance market. Securities class action suits - which were a minority of securities suits filed in 2008 - no longer are a reliable barometer of public company D&O insurance trends. Securities litigation now allege common law torts, contract law violations and breach of fiduciary duty and when combined with the regulatory changes under the Obama administration, the D&O insurance marketplace needs to "adapt or die off" in the words of a leading attorney. Today Advisen published a 38-page report that goes well beyond anything published by other researchers to break out all forms of securities litigation that might trigger Directors & Officers or Errors & Omissions coverage and details shortcomings in D&O claims management that are contributing to higher defense costs. To help readers track potential exposure by company, Advisen's report includes the list of companies facing lawsuits in 2008 and the list of companies facing multiple lawsuits over the past thirteen years. Advisen also uses its global client base to provide exclusive commentary from market leaders about these litigation developments - don't miss their insight. The information contained in Advisen's report is not freely available on the web or in any other source and is more complete and relevant than reports from other sources which charge far more for their reports. Click on the link below to purchase your copy.
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Using its MSCAd database, the most complete and reliable source of large losses, Advisen details the 2008 cases by type, by industry, by type of coverage and also forecasts what 2009 will bring. Advisen also details the 685 suits stemming from the subprime and credit crises. The report also contains links to purchase further details about this litigation based on readers' specific needs (e.g. the complaints filed, a list of all 119 Madoff-related cases).
Market experts added their own commentary including why "We miss Bill Lerach" and how reacting to the changing landscape "You either adapt or you die off". All participants in the D&O or E&O industry should purchase the report to better assess underwriting standards, policy wordings and pricing criteria in a rapidly changing world.
More about the new forms of securities litigation and the impact on the D&O market. The global credit crisis in the aftermath of the meltdown of the subprime mortgage market led to an explosion of securities lawsuits in 2008, but it was only one part of a rapidly shifting securities litigation landscape. Analysts that focused solely on securities class action suits missed the fact that securities class actions are only one of a rapidly multiplying array of securities-related suits that are transforming the D&O insurance market. Additionally, a competitive and newly energized plaintiffs' bar is testing the boundaries of securities suits with novel theories of liability and far more complex complaints. This report examines the legal, economic and political forces at work in securities litigation in 2008 and assesses their impact on the D&O insurance market in 2009 and beyond.
