Alta Signa has released its latest claims report, identifying key trends in directors' and officers' (D&O) liability claims across Europe.
The findings reflect shifts in the legal and regulatory landscape, highlighting risks corporate leaders face, including regulatory breaches, bankruptcy litigation, shareholder disputes, and professional misconduct.
Regulatory breaches account for 34% of all notified D&O claims, making them the most common trigger. These include violations related to health and safety, environmental regulations, and data protection laws. Such cases often lead to significant legal and defence costs for companies and directors.
Claims linked to bankruptcy represent 12% of reported cases. Many of these involve allegations of mismanagement, with economic pressures such as the pandemic and rising interest rates cited as contributing factors. Liquidators and creditors frequently seek to recover unpaid liabilities by pursuing directors.
Shareholder litigation makes up 11% of D&O claims. These cases often stem from allegations of misleading public statements, undisclosed financial risks, and disputes related to mergers and acquisitions or conflicts of interest.
Precautionary notifications and general business litigation account for 43% of the reported claims. While many do not lead to formal legal proceedings, these notifications reflect a proactive approach by companies seeking to mitigate potential gaps in coverage.
A growing portion of claims involves misconduct such as fraudulent schemes, misuse of corporate assets, and breaches of fiduciary duty. These cases highlight the increasing complexity of D&O liability risks amid evolving regulatory and economic conditions.
Alta Signa said that its report provides insights into the financial and reputational risks associated with these claims, helping businesses and directors navigate the challenges of an increasingly complex legal environment.
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