COVID-Related–D&O Litigation in Professional Liability Insurance
This Professional Liability Insurance release also
adds a new discussion from Nancy
Kornegay on
COVID-19–related directors and officers (D&O) litigation. These
lawsuits have commonly been falling into three potential categories.
- A fall in the company's stock price
- Failed mergers and acquisitions
- Completed acquisitions and mergers that are deemed too expensive or too
cheap
Ms. Kornegay breaks some of the recently filed lawsuits into different
categories, including those primarily involving Side A litigation and those
centering around Side C litigation, and takes a closer look at each lawsuit
individually.
From her analysis of the relevant factors in each of these pandemic-related
lawsuits, she also highlights several potential coverage issues going forward,
as there will no doubt be more of these types of lawsuits.