Hangley Aronchick Segal Pudlin & Schiller shareholder Bonnie Hoffman and Liberty Mutual Insurance claims officer Arlene Levitin co–authored an article for Liberty Mutual Insurance Insights titled, “Planning for D&O Lawsuits: 3 Tips for Reducing Risks for Directors and Officers.”
In the article, Bonnie and Arlene discuss how the current economy is having a negative impact on the way companies operate and conduct business. They explain that as company stock prices and earnings decline, public companies become more susceptible to class action securities lawsuits where claimants allege that company directors and officers misrepresented projections.
Bonnie and Arlene examine potential claim risks and lay out three tactics to help proactively assess financial shifts and mitigate and reduce these risks. It is important to prioritize keeping stakeholders informed and connected, and to maintain open communication among all parties.
Businesses and leaders should also remain proactive by regularly reviewing insurance coverage with a trusted insurance partner to avoid potential lawsuits.
The article was also republished in The D&O Diary.
