Sunday, April 1, 2012
How Protective is D&O Insurance in Securities Class Actions?, by Michael Klausner, Stanford Law School, and Jason Hegland was recently posted on SSRN. Here is the 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.