D&O News

Are Employers Prepared for California’s Workplace Violence Prevention Law?

California’s Workplace Violence Prevention Senate Bill 553, which is now in effect (July 1), requires businesses with exposure in the state to implement robust workplace violence prevention plans. SB 553, which modifies an existing California labor code, gives the state’s …

Under Armour to Pay $434M to Settle Lawsuit Over Sales Disclosures

Under Armour on Friday said it has agreed to pay $434 million to settle a 2017 class action lawsuit accusing the sports apparel maker of defrauding shareholders about its revenue growth in order to meet Wall Street forecasts. The proposed …

A Good Year May Not Be a Good Thing in D&O Liability Market, Says AM Best

The U.S. directors and officer segment in 2023 recorded a direct loss ratio of 50.8—the best result in nearly a decade—but industry rating agency AM Best is not convinced the good times will last. In a special report on U.S. …

Qualcomm Reaches $75M Settlement Over Sales and Licensing Practices

Qualcomm agreed to pay $75 million to resolve a lawsuit in which shareholders accused the chipmaker of defrauding them by hiding its anticompetitive sales and licensing practices. A preliminary all-cash settlement was filed on Tuesday with the federal court in …

Directors and Officers Who Fail to Respond to Climate Change May Face Claims

In early March of this year, the Securities and Exchange Commission adopted rules targeted at enhancing and standardizing climate-related disclosures by public companies and in public offerings. The new rules mandate the inclusion of climate risk disclosures in a company’s …

Federal Agency Vows Pursuit of Individual Execs in Probes

The U.S. Justice Department will make executive accountability a part of every investigation of corporate wrongdoing, Deputy Attorney General Rod Rosenstein said. “Under our revised policy, pursuing individuals responsible for wrongdoing will be a top priority in every corporate investigation,” …

Latest Trends in Professional Liability Claims

Professional liability claims and coverage is evolving, according to Steve Whelan, director of management/professional liability product development for ISO. With increasing cyberattacks, comes coverage for ransomware and even blended coverage with other lines. Among other trends, healthcare claims are expected …

Ex-CFO of Bankrupt Enron Offers D&O Lessons From Accounting’s ‘Gray’ Areas

Andrew Fastow, former chief financial officer (CFO) of Enron Corp., a now-defunct energy trading company swept up in a massive fraud scandal in the early 2000s, warned a room full of directors and officers (D&O) underwriters that some companies today …

More Corporate Board Candidates Decline Job Due to Risks

A spot on a corporate board can be a plum post. It means compensation, usually stock, and often cash. Other perks include invaluable connections to fellow board members and executives, along with a profile boost in one’s given industry. But …

Cyber Coverage Experiences Growing Pains

In light of businesses increasing usage of information assets and advancing technology insurers are pulling away from cyber coverage, according to Kevin Kalinich, global practice leader of cyber risk insurance at Aon Risk Solutions. “A big misconception is that these …