2011 securities litigation: year-end reviewmanager for chubb multinational solutions (cms),...
TRANSCRIPT
2011 Securities Litigation: Year-End Review
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Securities Litigation Insight http://corner.advisen.com
• Quarterly report on Securities Litigation
• Copy of these slides
• Recording of today’s webinar
• Securities lawsuits (Advisen MSCAd large loss database)
• Subscribe to Management Liability FPN
Coming Soon:
Cyber Liability Journal
Management Liability Journal – 2nd Edition
D&O Commercial Insurance Group – 2,400+ Members LinkedIn D&O Commercial Insurance Group
http://www.dandodiary.com
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Moderator
Jim Blinn, Principal, Advisen Ltd.
Presenter and Report Author
John Molka, Senior Industry Analyst and Editor, Advisen Ltd.
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Today’s Panelists
Kevin LaCroix, Executive Vice President, OakBridge Insurance Services, LLC
David Williams, Vice President, Chubb Specialty Insurance
Mark Lebovitch, Partner, Bernstein Litowitz Berger & Grossmann LLP
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Today’s Panelists
Kevin LaCroix, Executive Vice President, OakBridge Insurance Services, LLC
Kevin M. LaCroix is an attorney and Executive Vice President, OakBridge Insurance
Services, Beachwood,Ohio, a division of R-T Specialty, LLC. OakBridge is an
insurance intermediary focused exclusively on management liability issues.
Kevin has been involved in directors’ and officers’ liability insurance issues for over 25
years. He began his career as a coverage attorney and partner at the Washington, D.C law
firm of Ross, Dixon and Bell. More recently, Kevin served as President of Genesis
Professional Liability Managers, a D & O underwriter and part of the Berkshire Hathaway
group of companies.
Kevin is also the author of the Internet weblog, The D & O Diary,
http://www.dandodiary.com, “a periodic journal containing items of interest from the
world of directors’ and officers’ liability, with occasional commentary.” In addition,
Kevin is a columnist for the Insurance Journal. Kevin is a graduate of the University of
Virginia and of the University of Michigan Law School.
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Today’s Panelists
David B. Williams is a Vice President of Chubb Specialty Insurance (CSI) and worldwide
manager for Chubb Multinational Solutions (CMS), professional liability lines of business. He
is based in Boston.
Mr. Williams joined Chubb in 1985 after working at a stock brokerage firm and Liberty
Mutual. He has held a number of progressively more senior positions in Chubb’s Executive
Protection Department (EPD) in the United States and worked 6 years for Chubb in Asia
based in Singapore and Thailand, 2 years overseeing Chubb’s EPD field operations in Latin
America & Europe and 4 years running Chubb’s Professional Liability and Financial lines
business in Canada.
Mr. Williams is President Elect on the trustee’s board of the Professional Liability
Underwriting Society (PLUS) and is a past President of the PLUS Foundation. He also serves
of the Board of the Buckingham Browne and Nichols school in Cambridge Ma.
Mr. Williams is a graduate of Harvard University where he received a Bachelor of Arts
(History) in 1982. In 2003 he completed the Kellogg School of Management's Executive
Development Program. In 2002 Mr. Williams was awarded the Harlem Black Achievers in
Industry Award. In 2000 he completed the Leadership Development program at the Center for
Creative Leadership in San Diego.
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Today’s Panelists Mr. Lebovitch is primarily responsible for the firm's corporate governance litigation practice,
focusing on derivative suits and transactional litigation. He has served as one of the lead counsel in
many of the most significant corporate governance actions in the past five years.
Most recently, he prosecuted the Pfizer Derivative Litigation, which resulted in a historic $75 million
dedicated fund to be used solely to support the activities of an unprecedented Regulatory and
Compliance Committee created in the settlement, which not only materially enhances the Pfizer
board's oversight but may set a new benchmark of good corporate governance for all highly
regulated companies. In other recent matters, he obtained a $69 million cash payment for
shareholders in a challenge to Xerox's acquisition of ACS; as well as a $14.5 million cash fund, and
near 60% increase in the takeover price, for Landry's shareholders when the CEO's alleged
misconduct became public.
In addition, Mr. Lebovitch has served as a co-lead trial attorney in numerous precedent-setting cases
including most recently the landmark trial challenging the Airgas Products, Inc. board’s use of a
poison pill. Previously, Mr. Lebovitch represented public pension systems seeking to vindicate
shareholder voting rights allegedly infringed by Yahoo!, Inc.'s employee severance plan and by
unique merger agreement and standstill provisions used in the private equity buyout of Ceridian
Corporation. He has also helped shareholders obtain higher prices and meaningful corporate
governance improvements in suits arising from, among other things, the hostile takeover battles over
Caremark Rx, Inc., CBOT Holdings, Inc., Longs Drug Stores, Inc., and Anheuser-Busch Companies,
Inc. Mr. Lebovitch also prosecutes securities litigations, and in that capacity was the lead litigation
attorney in In re Merrill Lynch Bondholders Litigation, which settled for $150 million, and is
currently a member of the team prosecuting In re Bank of America Securities Litigation.
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White Paper: Available on Advisen’s Corner Store
http://corner.advisen.com
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Securities Litigation – 2011
Key Developments
• New suits filed reach a record for year, drop as year moved on.
• Drop in breach of fiduciary duties suits in second half.
• Derivative actions on the rise: say-on-pay issues.
• Securities class actions up from 2010, but dropped in Q4.
• Regulatory actions up from 2010, but below record 2009.
• Suits against non-U.S. companies rose in 2011, especially Chinese companies.
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Securities Litigation – Historical View
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Case Breakdown
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Merger Objection – Historical View
2011 does not include 40 new investigations.
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Case Breakdown
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Sector Impact Metric™
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Information
Technology
Financials
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Market Cap Impact Metric™
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Globalization
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Today’s Panelists
Kevin LaCroix, Executive Vice President, OakBridge Insurance Services, LLC
David Williams, Vice President, Chubb Specialty Insurance
Mark Lebovitch, Partner, Bernstein Litowitz Berger & Grossmann LLP
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Merger Objection – Historical View
2011 does not include 40 new investigations.
Derivative Actions
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Today’s Panelists
Kevin LaCroix, Executive Vice President, OakBridge Insurance Services, LLC
David Williams, Vice President, Chubb Specialty Insurance
Mark Lebovitch, Partner, Bernstein Litowitz Berger & Grossmann LLP
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Securities Litigation Insight http://corner.advisen.com
• Quarterly report on Securities Litigation
• Copy of these slides
• Recording of today’s webinar
• Securities lawsuits (Advisen MSCAd large loss database)
• Subscribe to Management Liability FPN
Coming Soon:
Cyber Liability Journal
Management Liability Journal – 2nd Edition
D&O Commercial Insurance Group – 2,400+ Members LinkedIn D&O Commercial Insurance Group
http://www.dandodiary.com
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Chain Risks Revisted
Date: Thursday, April 5, 2012 at 11:00AM EDT
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