Corporate Directors and Officers are the targets of an increasing number of class action lawsuits. The average number of US class actions filed between 2007 and 2009 was nearly 60 percent higher than in 2006, according to the latest Boardroom Guide by Willis Group Holdings (NYSE:WSH), the global insurance broker.
The Willis report found that in the US the average number of class actions was 155 per year from 2007 to 2009, while in 2006 it was 99. Between 2007 and 2009 there were 465 US and 75 non-US class actions in total, with the latter averaging 25 per year versus just 12 in 2006.
Commenting on the increase in Directors and Officers (D&O) risk exposure, Mark Wakefield, Executive Director of FINEX Global, Willis’s Financial, Executive Risk and Professional Liability business, said, “The financial crisis has resulted in heightened regulation, leaving directors more exposed than ever to the risk of being sued for accounting irregularities; issues arising from insolvency proceedings; and breaches of health and safety legislation, environmental laws, and competition regulations.
Read More Willis News Release October 15, 2010