Professional Development

In recent years shareholder derivative action, typically based upon a breach of fiduciary duty claim against the D&O’s, have become much more common. As distinct from shareholder class actions, settlements or judgments owed by the D&O’s in derivative claims may not be indemnifiable by the corporation, so these claims must be covered under Side A of the D&O policy. If plaintiff’s attorney’s fees are part of the derivative settlement, are they covered by the policy?

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