The Intersection Among Torts, Science, Corporate Law, Insurance & Bankruptcy

Category Archives: Crisis Management

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UK Sentencing Statute May Notably Up the Fines for Serial Violators

Posted in Crisis Management, D + O Issues, Government Claims/Fines, Litigation Industry
For companies operating in the UK, there are more issues for public company directors and risk managers to consider when evaluating whether management’s operational philosophy poses risks that are not acceptable to the company and its shareholders. Among other things, a question to ask is whether an enterprise is prepared to accept the risk of… Continue Reading

Corporate Executives and Criminal Charges – Some Issues are Highlighted by an Ongoing Criminal Trial in Georgia for Alleged Evidence Cover Up Involving Peanut Related Salmonella Poisoning

Posted in Criminal Law and Torts, Crisis Management, Mass Tort Issues
When should corporate officers face criminal charges? Judge Rakoff famously commented on DOJ not indicting bankers from the 2008 financial fiasco. There also are ongoing media stories regarding GM’s ignition switch recall failures, and some related calls for new criminal laws to foster criminal charges. (see this July 16, 2014 McClatchy News article by Greg… Continue Reading

GM’s Ignition Switch Recall – Another Fund, or Litigation?

Posted in Crisis Management
Which direction will GM take for its ignition switch failures – a compensation fund or litigation? Relevant considerations include the outcome of the ongoing internal investigation undertaken by Anton Valukas, reputation risk, costs, insurance (or self-insurance), and the terms of GM’s prior race through a farcical chapter 11 proceeding. News stories this week arise from… Continue Reading

Uber Banks Face More Pressure as CDO Litigation to Grow Again as Feds Are to File Massive Suits Against the Banks

Posted in Crisis Management
The NYT story is here.  One can assume that day-traders and  hedge funds will be busy shorting bank stocks and otherwise betting on the litigation impacts.  The key excerpts are: By NELSON D. SCHWARTZ The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing… Continue Reading

Financial Firms Hit With More Class Certifications Regarding Claims of Financial Fraud in Mortgage Backed Securities

Posted in Crisis Management
Class actions and mass filings raise the stakes for mass tort defendants. Back in the day, before "free fall" descents into chapter 11,  several "asbestos defendants" felt enormous pressures from mass trial proceedings. The names include Cimino, West Virginia’s several "mass trials," and the New York Powerhouse Litigation, and at a time, the federal asbestos MDL. … Continue Reading

Tough News for Crisis Managers at Public Companies – Hedge Funds May Have Have 25% of Their Investments in “Event-Driven” Investing – Such as Mass Tort Claims and Regulatory Impact Cases

Posted in Crisis Management
Suppose you are a crisis manager worried about your public company’s falling stock price due to massive tort claims and/or regulatory changes. As you weigh options and public statements, consider this August 28, 2011 Financial Times article by Phil Davis. Mr. Davis’ article  suggests that hedge funds are increasingly seeking out "event-driven" investing, such as… Continue Reading

Tort Wars – The Next Step in the Toyota Saga Regarding Alleged Document Destruction

Posted in Criminal Law and Torts, Crisis Management, Litigation Industry
Here is a different example of how mass tort litigation ends up becoming a media story. In this instance, the media consists of the latest story on Toyota’s battles regarding alleged destruction of internal documents in order to avoid the information becoming evidence in rollover cases. The short version is that after suing Toyota for… Continue Reading