Latest Trends in Insurance Litigation
According to the latest statistics, in 2018, almost one in 20 S&P 500 companies was hit with a securities class-action lawsuit. The latest trends indicate that air crashes, concert shootings, data breaches, opioids, sexual misconduct, and wildfires now drive large, event-driven lawsuits that are costing insurance companies millions. Derivative Lawsuits In addition, these events are also triggering securities class actions against company boards as well, known as “derivative” lawsuits. These typically accuse directors and officers of failing in their fiduciary responsibilities as well. For example, Wells Fargo and the company’s then CEO were sued for failing to stop the creation of false customer accounts. The company (i.e. its insurance company) settled the lawsuit for $240 million. Strangely, these settlements often go to the very companies that are the subject of the lawsuits; funds that are often supposed to go towards corporate governance changes, such as overhauling the board. These are known as “derivative settlements.” Merger Objection Lawsuits Other types of insurance litigation on the rise includes merger objection lawsuits. According to Chubb’s report, 85 percent of mergers in 2018 were challenged by litigation; usually involving claims that the acquiring company paid too much or the target company sold for too little. Cyan v. County Employees Retirement Fund Opens State Courts to Securities Act Claims One U.S. Supreme Court decision in particular also led to a significant increase in securities litigation: Cyan v. County Employees Retirement Fund, which reinforced the ability for state courts to hear claims related to the Securities Act of 1933 as well as dictating that defendants cannot remove class action lawsuits from state to federal court simply because they only contain Securities Act claims. Prior to this decision, companies were able to argue that Congress had removed jurisdiction over a number of securities class-action lawsuits from the state courts. As a result of the decision, plaintiffs now find it significantly easier to “forum shop” for a jurisdiction that will as friendly as possible to their lawsuit. However, several cases that are currently pending in the Delaware Supreme Court could open the door to companies to include wording that mandates that shareholders file in federal court in their charter documents. Doing so would eliminate duplicative state court litigation, which would then affect Directors & Officers insurance. Contact Our Florida Insurance Litigation Attorneys to Find Out More When faced with a new lawsuit, insurance companies usually have to spend between nine and 10 million dollars just to even begin settlement talks. As a result, it has become increasingly difficult for new companies to even obtain Directors & Officers insurance. The Tampa insurance bad faith attorneys at HD Law Partners represents insurance companies whenever there is a dispute over coverage, damages, or liability. We also provide full defense services for insurance bad faith or extra-contractual liability claims. Contact our insurance bad faith defense attorneys today to find out more. Resource: oyez.org/cases/2017/15-1439 cnbc.com/2020/01/09/companies-are-paying-big-bucks-to-insure-boards-against-liability-as-class-action-suits-soar.html Nine Months After Hurricane Michael, More Than 20,000 Hurricane Claims Go Unpaid Posted in Uncategorized | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us