Corporate Governance

Top Ten 2010 Corporate and Securities Stories.

By Adam G. Kurtz

According to The D & O Diary blog, below is a list of the top ten news stories in 2010.  For more, click here:

1. Securities Suits Pick Up in Year?s Second Half: After a filing downturn in the year?s first half, the number of securities lawsuit filing picked up in the last six months of the year.  For more, click here.

2. The Changing Mix of Corporate and Securities Lawsuits: The mix of corporate and securities lawsuits have changed with less class action securities lawsuits as a percentage of corporate and securities cases. For more, click here.

3. Banks Fail: 157 banks failed during 2010, the largest annual number of bank failures since 1992. For more, click here.

4. Credit Crisis Lawsuit Settlements: The subprime and credit crisis-related litigation wave continues into its fifth year early in 2011, without causing much damage ashore.  For more, click here.

5. Megasettlements of Shareholders? Derivative Lawsuits Surge: The emergence of large settlements of shareholders derivative lawsuits, including the $90 million AIG/Greenberg settlement and the $75 million Pfizer settlement. 

6. Rare Securities Lawsuit Trials Result in Plaintiffs? Verdicts: Although very few securities class action lawsuits actually go trial, in 2010, two cases made it all the way through to jury verdicts. In both the Vivendi and BankAtlantic securities cases, the jurors entered verdicts on behalf of the plaintiffs.

7. Assessing Coverage for "Bump Up" Claims: Since more corporate and securities lawsuits arise out of merger and acquisition activity ? so-called "bump up" claims ? directors and officers are increasingly looking for insurance to cover these claims. 

8. D&O Insurance Coverage for Informal SEC and Internal Investigations:  In either case, the question is whether or not there is a "claim" as required to trigger coverage under the policy.

9. Is a Whistle the Sound of the Future?: The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010?s new whistleblower provisions seem likeliest to have a significant litigation impact. For more, click here.

10. Foreign Companies, U.S. Courts: The U.S. Supreme Court issued its long-awaited decision in the Morrison v. National Australia Bank case, holding that Section 10(b) of the Securities Exchange Act of 1934 applies only to transactions taking place on the U.S. securities exchanges, or domestic transactions in other securities. For more, click here.

Full post as published by PomTalk on January 07, 2011 (boomark / email).