Questions arise every day, it seems, concerning the extent of Fiduciary duties and relationships, if any, that are owed by and among corporate officers, directors, shareholders and consumers. Lawsuits have reportedly been filed challenging the decisions of officers or directors to enter into certain mergers and acquisitions, and claims have also been made concerning spending decisions involving shareholder money at publicly held corporations, as well as the timing and amount -- in one case, $4 Billion reportedly -- of so-called bonuses. See generally Julie Creswell, "Market Place/Price Paid For Merrill Is Rising" p. B1, col. 6 (New York Times Nat'l Ed., Business Day Section, Saturday, January 24, 2009); Julie Creswell and Louise Story, "John Thain, Merrill's Former Head, Is Out At Bank of America" p. A1, col. 1 (New York Times Nat'l Ed., Friday, January 23, 2009), published online with the headline, "Thain Resigns Amid Losses at Bank of America"; Andrew Ross Sorkin, "Dealbook/The Titans Take It On The Chin" (New York Times Online Tuesday, January 27, 2009); Louise Story and Julie Creswell, "Bank of America Board Under Gun From Critics" p. B1, col. 2 (New York Times Nat'l Ed., Business Day Section, Wed., January 28, 2009).
Director's and Officer's Insurance Companies beware. The claims that have not already reached your office are coming to you for Insurance Coverage determinations, very soon. A lengthy post today on this Issue, "Directors and Officers and Fiduciary Duties," can be found at www.insuranceclaimsbadfaith.typepad.com.
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