Companies that have settled lawsuits for millions of dollars under the Illinois Biometric Privacy Act are now having to battle their insurance providers to get their costs reimbursed.
Tag: class action suits
Federal Judge Says GM Must Face Class Actions Over Defective Transmissions
A federal judge in Detroit certified class actions for drivers in 26 U.S. states who accused General Motors Corp of producing faulty transmissions.
Post-SPAC Technology Company Hit with Securities Class Action
Private companies with cutting-edge technology have become particularly attractive targets for special purpose acquisition companies (SPACs). These private companies may choose to go public via SPAC for a number of reasons that include the ability to share projections with investors, better valuation prospects and deal execution certainty. Much like companies that go public by way… Continue reading Post-SPAC Technology Company Hit with Securities Class Action
Stock Market Frenzy Will Add to Insurers’ Social Inflation Pressures: AM Best
AM Best is of the view that insurers providing directors and officers (D&O) insurance coverage for Robinhood, the free trading app facing class-action lawsuits for restricting stock purchases, could face steep defense and containment costs. Stock market volatility is a major driver of shareholder litigation, especially D&O claims. Disclosures provided by Robinhood will be under… Continue reading Stock Market Frenzy Will Add to Insurers’ Social Inflation Pressures: AM Best
Companies Are Paying a Lot More to Insure their Directors and Officers
Many companies in the U.S. and Australia are paying steeply higher rates for insurance that covers costs for directors and top executives when they or the company are sued. Driving the increases is the rise in shareholder litigation, both in the number of cases and size of jury awards and settlements, brokers said. Another connected… Continue reading Companies Are Paying a Lot More to Insure their Directors and Officers
Musk’s Maverick Lawsuit Shield Is Sign of Skyrocketing D&O Rates
When Elon Musk said in April he was dropping the insurance policy that protects Tesla Inc.’s board from shareholder lawsuits, it got Skip McBride’s attention. To McBride, who used to manage law firm Bracewell LLP’s malpractice exposure, Musk’s decision to insure Tesla’s directors out of his own pocket was a first—and a risky move. But… Continue reading Musk’s Maverick Lawsuit Shield Is Sign of Skyrocketing D&O Rates
Supreme Court Sides with Business in Arbitration Case
The Supreme Court put tighter limits on classwide arbitration Wednesday, making it easier for businesses to avoid claims by groups of employees or consumers. Workers and consumers bound by arbitration clauses automatically waive the right to pursue classwide claims unless their contracts specifically provide for such proceedings, the court held, dividing 5-4 along its conservative-liberal… Continue reading Supreme Court Sides with Business in Arbitration Case