Defense Costs

Myths & Misconceptions of Biotech Securities Claims: An Analysis of Motion to Dismiss Results from 2005-2016

By Doug Greene on March 14, 2017

Posted in Biotech, Defense Costs, Falsity Analysis, Litigation Strategy, Motions to Dismiss, Securities Class Action, Securities Class Action Statistics, Statements of Opinion, Supreme Court

By Doug Greene, Genevieve York-Erwin, Michael Tomasulo

I. Introduction

Small, development stage biotech companies are widely considered to be attractive targets for securities actions given the inherent risks of the industry and the volatility of their stock prices. As a result, many of these companies have relatively limited D&O insurance options. But are…

3 Key Securities Litigation Developments of 2016

By Doug Greene on December 27, 2016

Posted in 2nd Circuit, 7th Circuit, 9th Circuit, Class Certification, Cyber Security, Defense Costs, Defense Counsel, Falsity Analysis, M&A Litigation, Motions to Dismiss, Plaintiffs' Bar, SEC, SEC Enforcement, Securities Class Action, Securities Class Action Statistics, Settlement, Statements of Opinion, Supreme Court

Following is an article I wrote for Law360, which gave me permission to republish it here:

Among securities litigators, there is no consensus about the importance of developments in securities and corporate governance litigation. For some, a Supreme Court decision is always supreme. For others, a major change in a legal standard is the most…

Lessons Learned in London

By Doug Greene on November 30, 2016

Posted in Cyber Security, D&O Insurance, D&O Insurance Brokers, Defense Costs, Defense Counsel, Plaintiffs' Bar, Securities Class Action, Supreme Court

Earlier this month, I spent a week in the birthplace of D&O insurance, London. In addition to moderating a panel at Advisen’s European Executive Risks Insights Conference, I met with many energetic and talented D&O insurance professionals, both veterans and rising stars, to discuss U.S. securities litigation and regulatory risks. Themes emerged on some key…

The Decline of the Disclosure-Only Settlement: Will We Regret What We Wished For?

By Doug Greene on August 17, 2016

Posted in Corporate Governance, D&O Insurance, Defense Costs, Delaware Courts, Director Service, Litigation Reforms, M&A Litigation, Plaintiffs' Bar, Settlement

In combination with the Delaware Court of Chancery’s decision in In re Trulia, Inc. Stockholder Litigation, 129 A.3d 884 (Del. Ch. 2016), Judge Posner’s blistering opinion In re Walgreen Company Stockholder Litigation, 2016 WL 4207962 (7th Cir. Aug. 10, 2016), may well close the door on disclosure-only settlements in shareholder challenges to mergers. …

5 Wishes for Securities Litigation Defense: Greater Director Involvement in Securities Litigation Defense and D&O Insurance

By Doug Greene on July 18, 2016

Posted in Board Oversight, Corporate Governance, D&O Insurance, D&O Insurance Brokers, Defense Costs, Defense Counsel, Plaintiffs' Bar, Securities Class Action, Securities Class Action Statistics

One of my “5 Wishes for Securities Litigation Defense” (April 30, 2016 post) is greater involvement by boards of directors in decisions concerning D&O insurance and the defense of securities litigation, including defense-counsel selection. Far too often, directors cede these critical strategic decisions to management.

For most directors, securities litigation is a mysterious…

5 Wishes for Securities Litigation Defense: Greater Insurer Involvement in Defense-Counsel Selection and Strategy

By Doug Greene on May 31, 2016

Posted in Corporate Governance, D&O Insurance, Defense Costs, Defense Counsel, Litigation Strategy, Securities Class Action, Securities Class Action Statistics, Settlement

One of my “5 Wishes for Securities Litigation Defense” (April 30, 2016 post) is greater D&O insurer involvement in securities class action defense.

This simple step would have extensive benefits for public companies and their directors and officers. D&O insurers are repeat players in securities litigation, and they have the greatest economic interest…

5 Wishes for Securities Litigation Defense: A Defense-Counsel Interview Process in All Cases

By Doug Greene on May 13, 2016

Posted in Corporate Governance, D&O Insurance, D&O Insurance Brokers, Defense Costs, Defense Counsel, Falsity Analysis, Litigation Strategy, Motions to Dismiss, Scienter Analysis, Securities Class Action, Securities Class Action Statistics, Statements of Opinion

One of my “5 Wishes for Securities Litigation Defense” (April 30, 2016 post) is to require an interview process for the selection of defense counsel in all cases.

When a public company purchases a significant good or service, it typically seeks competitive proposals. From coffee machines to architects, companies invite multiple vendors to…

5 Wishes for Securities Litigation Defense

By Doug Greene on April 30, 2016

Posted in Board Oversight, Class Certification, Corporate Governance, D&O Insurance, Damages Analysis, Defense Costs, Defense Counsel, Falsity Analysis, Fraud-on-the-Market Doctrine, Litigation Reforms, Motions to Dismiss, Safe Harbor, Securities Class Action, Securities Class Action Statistics, Statements of Opinion, Supreme Court

I am committed to helping shape a system for securities litigation defense that helps directors and officers get through securities litigation safely and efficiently, without losing their serenity or dignity, and without facing any real risk of paying any personal funds.

But we are actually moving in the opposite direction of this goal, and unless…

Companies May Be Taking a Risk by Hiring Corporate Counsel to Defend Securities Class Actions

By Doug Greene on October 27, 2015

Posted in Corporate Governance, D&O Insurance, D&O Insurance Brokers, Defense Costs, Defense Counsel, Falsity Analysis, Scienter Analysis, Securities Class Action, Statements of Opinion

When a public company purchases a significant good or service, it typically seeks competitive proposals. From coffee machines to architects, companies invite multiple vendors to bid, evaluate their proposals, and choose one based on a combination of quality and cost. Yet companies named in a securities class action frequently fail to engage in a competitive…

Fixing the Economics of Securities Class Action Defense: Nationwide Defense by Full-Time Securities Litigators

By Doug Greene on August 31, 2015

Posted in D&O Insurance, Defense Costs, Defense Counsel, Litigation Strategy, Plaintiffs' Bar, Securities Class Action, Securities Class Action Statistics

In my last D&O Discourse post, “The Future of Securities Class Action Litigation,” I discussed why changes to the securities litigation defense bar are inevitable: in a nutshell, the economic structures of most of the typical securities defense firms result in defense costs that significantly exceed what is rational to spend in a…

Doug Greene

Doug is one of the most experienced and successful securities and governance litigators in the United States. He defends and counsels clients in securities class…

Doug is one of the most experienced and successful securities and governance litigators in the United States. He defends and counsels clients in securities class actions, shareholder derivative actions, shareholder challenges to mergers and acquisitions, SEC investigations, and internal investigations.