Find peace of mind with management liability coverage from a company that’s rated “A+” (Superior) by AM Best.* Take a look at some recent claim examples. Remember, every claim is different and coverage may vary.
*Rating affirmed December 15, 2023
Public Company D&O Coverage: Claims Scenarios
A group of a shareholders filed a class-action lawsuit against the company and its board of directors alleging the defendants made materially false and misleading statements and failed to disclose materially adverse facts regarding the company’s business in violation of the Securities Exchange Act. The defendants filed a motion to dismiss the lawsuit, which was granted by the court. However, the defendants incurred approximately $700,000 in defense costs.
A public company’s shareholder filed a lawsuit against the company alleging its directors and officers negligently failed to discover that an employee embezzled money from the company. Defense fees are approaching $400,000 and the parties are discussing settlement in the range of $500,000.
A former Chief Executive Officer issued a demand letter alleging the company breached his employment agreement by preventing him from exercising his stock options. The parties litigated the case extensively before settling the case for a total of $1.2 million. Approximately $350,000 in defense fees were incurred.
A dispute arose when a technology firm hired employees of the plaintiff and then bid a project using information it gained from the employees. Parties are in the midst of a forum dispute and nearly $200,000 in defense costs have been paid to date.