Product Update

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.