How Protective is D&O Insurance in Securities Class Actions?

PLUS Journal, Vol. 23, No. 2, February 2010

Stanford Law and Economics Olin Working Paper No. 425

4 Pages Posted: 29 Mar 2012 Last revised: 26 Apr 2012

Michael Klausner

Stanford Law School

Jason Hegland

Stanford Law School

Date Written: February 28, 2010

Abstract

This article provides basic descriptive statistics on actual payments by D&O insurers for amounts paid in settling securities class actions. Insurers cover 100% of settlements in over 50% of cases and something less than 100% in another 35% of cases. Officers and (rarely) directors pay in 6% of cases.

Keywords: Director and Officer Liability Insurance, Director and Officer Liability, Securities, Securities Class Actions, Shareholder Litigation, Settlement

JEL Classification: G30, G38, G39, K22

Suggested Citation

Klausner, Michael and Hegland, Jason, How Protective is D&O Insurance in Securities Class Actions? (February 28, 2010). PLUS Journal, Vol. 23, No. 2, February 2010; Stanford Law and Economics Olin Working Paper No. 425. Available at SSRN: https://ssrn.com/abstract=2029356

Michael D. Klausner (Contact Author)

Stanford Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States
650-723-6433 (Phone)
650-725-0253 (Fax)

Jason Hegland

Stanford Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States

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