Thought Leadership

Aon Financial Services Group: D&O Quarterly Review


A monthly publication highlighting news and developments in executive liability and insurance

2018 Quarterly Review - First Quarter

General News

  • SEC Halts Bank’s Initial Coin Offering
  • Securities Suit Filings Hit Historic Levels
  • CFTC Brings Cybersecurity Enforcement Action
  • Investor Files Derivative Lawsuit Claiming Wynn Resorts Board Turned a Blind Eye to Steve Wynn’s Alleged Sexual Misconduct
  • U.S. Securities Suit Settlement is Fifth Largest
  • SEC Investigation of Theranos Serves as a Warning to Private Companies
  • Are the Tides Turning? Department of Justice Pursues Private Equity Sponsor in Alleged Payment of Kickbacks

Cases of Interest

United States Supreme Court Decisions

  • United States Supreme Court Decides Cyan Case and Holds that State Courts have Concurrent Jurisdiction over Claims Brought Only Under the 1933 Act
  • The United States Supreme Court Clarifies “Whistleblower” for Anti-Retaliation Protections Under Dodd-Frank

Insurance Coverage Cases

  • Florida District Court Rules Coverage Does Not Date Back to Unsealed Affidavit
  • “Prior Acts” Exclusion Not a Bar to Coverage
  • Allegations Found to Bear “Incidental Relationship” to Securities Exclusion, Barring Coverage in Connection with Sale of Securities
  • DOJ Investigation Constitutes Seven Separate “Claims” Under Directors and Officers Liability Policy but is Excluded from Coverage Due to Specific Litigation and Pending or Prior Litigation Exclusions
  • Court Requires Excess D&O Insurers to Advance Insureds’ Defense Costs
  • Despite Finding of Fraud, Neither Delaware Law nor Delaware Public Policy Relieves Insurers from Indemnification Obligation
  • Ninth Circuit Finds D&O Insurer May Rescind Policy for Material Misrepresentation

Corporate Governance Cases

  • Corwin Defense Ruled Inapplicable with Respect to Books & Records Demand

State Courts

  • Prior Knowledge Exclusion Applicable Where Insured Knew of Potential Claim Prior to Policy Inception
  • New York Court Refuses to Approve Disclosure-Only Settlement, Finding Disclosures Immaterial to Shareholders
  • Ninth Circuit Finds Data Breach Alone is Sufficient for Victims to Establish Standing

Cyber Corner

  • SEC Issues Cyber Guidance Aimed at Insider Trading

Related Information

Directors' and Officers' Liability Insurance
D&O Year in Review


Robbyn Reichman, Esq.
t +1.212.441.2309

Jacqueline Waters, Esq.
t +1.312.381.4563

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