The number of total securities class-action lawsuits may have declined in the U.S. in the past year, see Jamie McGee, "'Litigation Explosion' for Bankers May Have Ended (Update 2)" (Bloomberg.com, Friday, December 18, 2009), but that does not mean the end of need for Directors and Officers Liability Insurance Coverage. Far from it.
We are living through a Great Recession that began two years ago. It continues to be with us. It can be expected to continue for years more. The stock market improved but it is not bullish, it is a bear market to say the least. These are the times that try lawsuits against Directors and Officers. See id. And the times are such that the prevailing public mood is to hold Directors and Officers accountable for the consequences of their investment decisions. Investors may or may not win their lawsuits, but if they do not win and the Directors and Officers who made the investment decisions are "exonerated" under current law, it appears that "public reaction may lead to changes in regulation". Id.
Before closing this post, it is Christmas Eve Day. Keep your joyful Spirits up and wish everyone the best! Happy Holidays to All, and to All a Happy New Year!
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