Thought Leadership

Aon Financial Services Group: D&O Quarterly Review

A quarterly publication highlighting news and developments in executive liability and insurance

2019 Quarterly Review – Second Quarter

News and Developments in Executive Liability and Insurance

News & Developments

  • FTC Seeks to Strengthen Privacy and Data Security Protections
  • First Ever Data Breach Class-Action Suit Could Expand Liability
  • SEC Public Enforcement Activity Near Record Levels in First Half of Fiscal 2019
  • SEC Multi-Million Dollar Whistleblower Awards Announced
  • Post-Cyan: Does the PSLRA’s Automatic Stay of Discovery Apply in State Court?
  • Rideshare Company Sued in IPO Related Securities Class Action
  • Supreme Court to Answer whether the Civil Rights Act Protects Gay and Transgender People from Workplace Discrimination
  • EEOC Annual Filings Figures Show Increase in Sexual Harassment Cases
  • Overhauling Workplace Culture in the Federal Judiciary

Cases of Interest

Supreme Court

  • Broker Held Liable under Rule 10b-5, Despite Not Being the “Maker” of the False Statements

Insurance Coverage Cases

  • Formal Order of Investigation is a Claim and Related to Subsequent Enforcement Action
  • Court Holds Claims were Causally Related and thus a Single Claim
  • Prior Acts Exclusion Bars Coverage for Wrongful Acts that Occurred Both Before and After Prior Acts Date
  • Settlement Amounts Considered “Loss”
  • Conduct Exclusion Bars Coverage under D&O Policy
  • Insured Versus Insured Exclusion in Directors and Officers Policy is Ambiguous and does not Preclude Coverage
  • Coverage for TCPA Lawsuit Excluded Under D&O Policy
  • Specific Matter Exclusion Bars Five Lawsuits
  • Insured not Required to Disclose Claim on Application where it did not Assert Wrongful Acts
  • Response to Prior Knowledge Provision of Insurance Application Precludes Coverage
  • Application Misrepresentation Precludes Coverage
  • Settlement Blocking Former Bank Employees’ Claims to D&O Policy Proceeds Overturned

Other Cases of Interest

  • Derivative Suit was Properly Dismissed because Shareholders did not make a Pre-Suit Demand on the Board or Show Demand Futility
  • Delaware Supreme Court Finds Potential Liability for Outside Directors
  • Illinois Court Uses Rosenbach Decision to Confirm Liquidated Damages Available under BIPA without Showing Actual Injury

Cyber Corner

Increasing Regulatory Fines and Penalties for Privacy Protection Violations Elevate Corporate and Executive Risk

SEC Filings, Settlements and Judgments
FCPA Enforcement Actions


Jacqueline A. Waters, Esq.

Robbyn S. Reichman, Esq.

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