Directors and Officers Liability: Responding to Recent Surge in Claims and Lawsuits

Directors and officers are prime targets as companies come to terms with new exposures arising from regulatory compliance, taxation, sexual harassment, cybersecurity and a variety of other high-risk areas, while investors and regulators are increasingly bringing these issues to the forefront. Plaintiffs are securing third-party support and funding, helping to drive the expansion in D&O litigation.

The pursuit of claims is expected to increase throughout 2018 and beyond due to a steady increase in regulation of corporate boards, directors and officers. Insurance coverage to protect directors, officers and companies must not be ignored and may be more important than in the past.

Critical executive governance issues can range from long-term strategy and planning for cybersecurity oversight and board composition to crisis response related to investor activism, regulatory investigations, and sexual harassment claims. Corporate counsel must stay aware of regulatory changes that increase the risk of D&O liability and prepare with practical methods to avoid or mitigate misconduct liability. Risk management and legal departments must work together to develop risk transfer programs up to the task of maximizing insurance coverage, particularly in bet-the-company-scale litigation.

Listen as our panel discusses the current state of D&O liability claims, the most vulnerable areas of concern for executive governance, and best practices to reduce compliance lapses, penalties and potential litigation.

1. The current landscape of claims against directors and officers
2. Board composition and curtailing investor activism
3. Handling third-party claims and regulatory compliance failings
4. Cyber risk management and increased liability on directors and officers
5. Methods for executive governance to avoid sexual harassment claims and other misconduct

The panel will review the following key issues and how insurance coverage relates to them:

• Critical areas of potential liability for directors and officers
• Approaches to avoid/mitigate liability stemming from executive misconduct
• Cybersecurity rules and impact on director and officer liabilities
• Investor activism and implementing management processes
• Enhancing shareholder value and limiting interference through board composition
• Regulatory compliance lapses and avoiding penalties
• Key issues concerning D&O, cyber and other forms of liability insurance coverage
• Sexual harassment claims and executive governance