Dan Bailey Provides an Update on Recent D&O Claims Developments
The D&O claims environment is now in an unusually uncertain state. A fragile U.S. economy, a struggling global economy, high inflation and interest rates, a tight labor market, the collapse of several large crypto firms, and higher fuel costs will likely create a material increase in D&O claims activity in a wide variety of industries.
Added to this uncertainty is the Biden administration, which is proposing and implementing an increasing number of important regulations, is more aggressively pursuing regulatory enforcement proceedings, and is supporting wide-ranging social reforms. Those initiatives seem likely to directly or indirectly impact, at least to some extent, the nature, frequency and severity of D&O claims in various contexts.
The following summarizes many of the more important recent legal developments involving D&O claims. During these uncertain times, it is especially important for those who advise and insure directors and officers to carefully monitor and react to these and other developments.