Bankruptcy litigation followed regulatory action as the leading cause of European D&O claims, according to the Continental European focused specialty MGA.
Alta Signa has released a report looking at trends within European directors’ and officers’ liability (D&O) claims.
Regulatory breaches ‘dominated’ the claims picture, accounted for 34% of claims, according to the report from the managing general agent (MGA), often leading to substantial legal costs.
Bankruptcy litigation represented 12% of claims, the Continental European focused specialty MGA observed, driven by economic pressures and alleged mismanagement.
Shareholder actions made up another 11%, frequently tied to disputes over financial transparency and M&A decisions.
Precautionary notifications formed 43% of claims, reflecting proactive risk management by companies, Alta Signa said.
Emerging risks, including fraudulent schemes and fiduciary breaches, also showcased “the evolving complexity of D&O liability”, the MGA said.
The report includes anonymised examples of claims, by type, including regulatory breaches, shareholder actions and bankruptcy cases. Click here to view.
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