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D&O Liability Policies: A Potential Asset for Troubled Companies
One has only to open the newspaper, access the Internet, or turn on a television or radio to get a glimpse of the current turbulent economic climate. Businesses are cutting back or cutting jobs in an effort to survive, and the ongoing viability of many corporations and institutions appears to be in jeopardy. Historically, this type of economic climate is predictive of increased bankruptcy filings, liquidations, and other insolvencies. Under the appropriate circumstances, a company's directors' and officers' liability policies are potential corporate assets that should not be forgotten or ignored.
Directors' and officers' liability policies provide protection to officers and directors for claims against corporate officers and directors arising out of “wrongful acts” taken in their official capacities. “Wrongful acts” are defined in the policy itself, but typically extend to both acts and omissions, subject to stated exclusions. A wrongful act is typically defined as “breach of duty, neglect, error, misstatement, misleading statement, omission, or their misconduct as a director or officer.” A wide variety of activities may be covered, such as negligent omissions in proxy materials, misrepresentations of financial conditions and operations, violations of state law, overstating the corporation's net worth and future prospects, breaches of fiduciary duty, certain claims of self-dealing, misrepresentation, and constructive fraud.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.