Featured Articles

Is the FDIC Staking Out Its Territory or Extending Its Borders?

October 05, 2010 08:38

With one lone exception, the FDIC has not yet itself pursued litigation against the directors and officers of a failed financial institution. However, the FDIC has already made it clear that it intends to assert its rights under FIRREA as the receiver of failed banks to take control of...

A Blogger's Reflections

Kevin LaCroix
May 02, 2011 08:27

In a few days I will celebrate the fifth anniversary of the day I published my first post on this blog.  I had no idea what was going to follow after that first post, but having come so far after so long, it seemed appropriate on this occasion to reflect on the enterprise. It has been an...

Supreme Court Limits Foreign Investors' Access to U.S. Courts

June 24, 2010 16:20

In a long-awaited ruling, the U.S. Supreme Court on June 24, 2010 issued an opinion affirming dismissal of the Morrison v. National Australia Bank case. Among other things, the Court’s opinion will limit securities claims by investors who bought their shares on foreign exchanges....

Wells Fargo Mortgage-Backed Securities Case Settles for $125 Million

Kevin LaCroix
July 08, 2011 08:28

In what is as far as I know the first settlement of a securities class action lawsuit brought by mortgage-backed securities investors as part of the subprime and credit crisis-related litigation wave, the parties to the Wells Fargo Mortgage-Backed Certificates securities litigation have agreed to...

Supreme Court Grants Cert Petition in Matrixx Initiative Securities Suit

June 16, 2010 08:58

There was a time when it was relatively rare for the Supreme Court to take up securities cases. Until recently, the Court basically went several years between cases filed under the securities laws. Those days are clearly over, as the Court has granted cert petitions in several securities cases in...

WikiLeaks Disclosures Reveal RBS Chairman's Admission of '"Failure of Fiduciary Responsibilities"

Kevin LaCroix
December 15, 2010 08:27

In a prior post, I speculated how WikiLeaks-style disclosures might fuel claims against corporate officials, to the extent that the previously nonpublic information conflicted with public statements. The latest round of WikiLeaks disclosures includes revelations that provide a more specific example...

The Day College Football Produced a D&O Story

Kevin LaCroix
December 01, 2010 08:23

Our beat here at The D&O Diary is basically restricted the world of directors’ and officers’ liability. So, regrettably, we don’t often have the occasion to write about college football. But a story making the rounds on the Internet manages to connect Colonial Bank (the third...

Thoughts About WikiLeaks and Executive Liability

Kevin LaCroix
December 03, 2010 08:01

Though it quickly recovered, Bank of America’s share price declined earlier this week on speculation that the company is the bank whose internal documents WikiLeaks intends to post on the Internet at some future date. According to news reports, the WikiLeaks  founder Julian...

A Failed Bank, A Lawsuit, and Some Interesting Questions

July 29, 2010 08:01

Though 268 banks have failed since January 1, 2008, there has been relatively little litigation related to the failed banks, as least so far. For example, the FDIC only recently filed its first action against former directors and officers of a failed bank (as discussed here). There have also been...

BP Deepwater Horizon Derivative Suit Dismissed in Favor of English Forum

Kevin LaCroix
September 19, 2011 08:30

A wave of litigation followed in the wake of the April 2010 Deepwater Horizon oil spill. Among this litigation were several shareholder derivative suits filed against certain directors and officers of BP and of its U.S. subsidiary. At the time these cases first arose, I asked whether or not...