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Posts Tagged ‘management liability’

Directors & Officers liability for life sciences marketplace

February 16, 2016 Leave a comment

stocks_lifesciIn 2015, the D&O market as a whole experienced a competitive environment, with new and increased capacity leading to healthy premium decreases for some companies. The public D&O insurance market for life sciences companies, however, continues to evolve, with the industry still a prime target of Federal Securities Class Action (FSCA) lawsuits. In 2014, a total of 170 FSCA lawsuits were filed, including 39 complaints against 38 companies in the life sciences sector. At 23% of all 2014 FSCA filings, this represents a noteworthy increase over recent years.

The heightened regulatory environment and the increase in investigations and enforcement actions by the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) –perhaps most notably in the SEC’s increased targeting of individuals–has presented more complex and costly exposures for life sciences companies. Read more…

New risks involved in Title III changes to JOBS Act

November 12, 2015 Leave a comment

wall_street_fineThe 2012 Jumpstart Our Business Startups (JOBS) Act was passed in order to provide startups access to cost-effective investor capital by easing various securities regulations. This was the first step in enabling ordinary investors to participate in equity-based crowdfunding. The second step, Title III, was approved on October 30th by the SEC, but will not take effect until 180 days after they are published in the Federal Registrar.

Current SEC rules permit only accredited investors to participate in crowdfunding. An accredited investor is someone who earns greater than $200,000 per year, or whose net worth is over $1 million without taking into account their place of residence. Read more…

HIPAA disclosure laws: understanding the “standard of minimum necessity”

December 15, 2014 Leave a comment

hipaaEarlier this year, reports surfaced of a hospital employee facing criminal charges for violating HIPAA privacy requirements, prompting discussion about the intense scrutiny and punishment being handed down by courts in these cases. The HIPAA Privacy Rule regulates the use and disclosure of Protected Health Information (PHI) held by covered entities and gives patients an array of rights with respect to that information. But at the same time, the rule also permits the disclosure of health information (without a patient’s express written authorization) that may be needed for patient care and other important purposes, such as law enforcement purposes or to facilitate treatment, payment and health care operations. In light of the recent Ebola outbreak in West Africa and the subsequent infection of U.S. and other foreign aid workers with the disease, it’s important for hospitals, physicians and other health care providers across the country to familiarize themselves with these specific exceptions to the law. Read more…

HIPAA violators not immune from criminal charges

November 4, 2014 Leave a comment

HIPAA_violatorsIn light of recent reports of a hospital employee facing criminal charges for violating privacy requirements under the Health Insurance Portability and Accountability Act (HIPAA), it’s clear that not only do violators of the law risk losing their job if they’re caught, they could end up in jail. The case isn’t the first federal prosecution under the Act – back in 2010, a Californian doctor received four months in jail after pleading guilty to four misdemeanor counts of snooping into the medical records of his supervisors and several well-known celebrities. While these cases are not common, they serve as a stark reminder to employees of HIPAA covered entities that the courts take HIPAA violations seriously and do not hold back delivering fines and criminal sanctions to those found guilty of breaking the law. Read more…

ISIS terror is making K&R policies all the more critical

September 23, 2014 Leave a comment

isisThe release of a third video showing the Islamic State in Iraq and Syria (ISIS) executing a foreign hostage has ignited global unrest and brought heightened awareness to the growing threat of kidnapping and terrorist activities in the Middle East. In August, American journalist James Foley became the first U.S. national to have been executed since the start of the Syrian conflict in 2011. Within two weeks, the militant group publicly killed another U.S. hostage, followed by a third video in which a British national was beheaded. ISIS claimed each execution an act of retribution for the ongoing U.S. airstrikes against the group’s position in Northern Iraq. While debate ensues over the relationship between ransom payments and funding terrorism (the U.S. and U.K. governments currently both have non-payment policies for ransom demands), the risks facing foreign national workers living in these areas of extreme danger continue to mount. Aid workers and media personnel (including journalists) sent to work and report on the conflict in Syria have become primary targets of ISIS. According to data from Reporters without Borders, 65 journalists killed last year while covering stories in country, while an estimated 25 to 40 individuals are currently being held hostage.  Read more…

Market Basket case: Potential coverage exclusions to consider

August 14, 2014 Leave a comment

The Demoulas/Market Basket saga has dominated the news here in New England over the past month. From a risk management perspective, the developments of the case should signal risk managers to review their Management Liability policies and insurance program, especially in the following areas:

Crisis Management coverage – Some insurers offer a sublimit of coverage to assist companies that must announce adverse news relating to business operations. Typically, insurers offer a select group of public relations firms to assist the insured with press releases and interviews. The expense sublimit can vary between $25,000 to $75,000 by Insurer. Read more…

Latest EEOC’s report highlights rise in systemic suit filings

February 19, 2013 Leave a comment

EEOC2The U.S. Equal Employment Opportunity Commission (EEOC) recently published its 2012 Performance and Accountability Report. The Report foreshadows the EEOC’s strategic objectives for 2013. The EEEOC’s proposed strategic plan has established three objectives: (1) combating employment discrimination through strategic law enforcement; (2) preventing employment discrimination through education and outreach; and (3) delivering excellent and consistent service through a skilled and diverse workforce and effective systems.

The Report recognizes the EEOC’s record recovery of $365.4 million through the administrative process in 2012, an increase of $700,000 from 2011. Read more…