Elon Musk was on to something when he complained that the cost of insurance to protect company directors and officers from shareholder litigation has gotten out of control. The impulsive Tesla Inc. boss may be an unlikely spokesperson for the unfairness of these spiraling fees, but they reveal something about this age of corporate misadventure… Continue reading Cost of D&O Liability Insurance Soars as Litigation Proliferates
Tag: D&O insurance
Volkswagen Taps D&O Policy to Get Hundreds of Millions in Dieselgate Settlement with Former Execs
Volkswagen said on Wednesday it had agreed to settle claims against four former executives, including long-time CEO Martin Winterkorn, that will see the carmaker receive 288 million euros ($351 million) in compensation related to its emissions scandal. The settlement came on the same day that Berlin prosecutors charged Winterkorn with giving false testimony to the… Continue reading Volkswagen Taps D&O Policy to Get Hundreds of Millions in Dieselgate Settlement with Former Execs
Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers
Blank-check companies, aka special-purpose acquisition companies (SPACs), already have stiff competition in finding firms with which to merge. Now, with recent share-price declines and a ticking clock to take companies public, the pressure to do so is ramping up even more. The new challenges for creators of SPACs result in part from the abundance of… Continue reading Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers
U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
Underwriting losses are expected to continue over the near term for the U.S. directors & officers (D&O) liability insurance segment despite a 67% cumulative increase in market premiums over the past two years, Fitch Ratings says. The market has been disrupted by a confluence of challenging economic, regulatory, legal, investment and social factors since the… Continue reading U.S. D&O Insurers Post Underwriting Losses Despite Record Premiums
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
Management Liability Risks on the Rise in Tech Sector as Public Trust Declines: Marsh Study
Technology companies are facing increased management liability risks at the same time declining public trust within the sector is leading to more scrutiny and activism, according to findings from the 2021 Global Technology Industry Risk Study, published today by Marsh, the world’s leading insurance broker and risk advisor. The annual study surveys communications, media, technology,… Continue reading Management Liability Risks on the Rise in Tech Sector as Public Trust Declines: Marsh Study
Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze
Kunkle, of Philadelphia, runs a website for options traders. He’s used to spending his days talking about trades with people who see themselves as being on the vanguard of investing trends. So he was struck last month when he got a text about a special-purpose acquisition company — or SPAC — from his mother, who… Continue reading Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze
Beazley Launches D&O Product Suite for US-Domiciled SPACs
Specialist insurer Beazley has launched a directors’ and officers’ (D&O) product suite designed specifically for US-domiciled Special Purpose Acquisition Companies (SPACs). Beazley’s new D&O products for SPACs offer dedicated coverage for either the individuals, or the entity and individuals combined, to provide greater transparency and clarity about insurance coverage, from the initial public offering (IPO)… Continue reading Beazley Launches D&O Product Suite for US-Domiciled SPACs
SPAC Flop Is Test Case for Disgruntled Investor Lawsuits
Waitr Inc. never had the resources of rivals Grubhub Inc. and UberEats. Yet in November 2018 the online food ordering and delivery business went public through a merger with blank-check firm Landcadia Holdings Inc. Landcadia had some powerful names behind it. Tilman Fertitta, a billionaire restaurateur, and Richard Handler, the chief executive officer of Jefferies… Continue reading SPAC Flop Is Test Case for Disgruntled Investor Lawsuits
Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial
It’s hard to believe anyone would pay $10 for $7 worth of a company’s shares. Yet that’s roughly what a lot of investors have been doing, by participating in a financial innovation known as a special purpose acquisition company, or SPAC. See related article. People have every right to give away their money. But the… Continue reading Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial