Directors & Officers or D & O claims are those made against public, private and non-profit companies’ executive managers. These management liability claims related to the individuals’ everyday decisions. To help you better understand these types of claims, here are four real-world D&O claims examples.
1.Fiduciary Duty Failure
Creditors of a financially-struggling company sued its management team for failure to identify, evaluate and secure the sale of company assets promptly. This failure led the company to default on its outstanding loans.
2.Intellectual Property Theft
An executive director left her non-profit organization to set up a new company. The organization sued her for taking with her access credentials to exclusive in-house software, which led to trademark infringement and unfair competitive advantage.
New Jersey-based insurance provider Axis Insurance reports that a company’s directors and officers did not disclose material facts and provided their investors with inaccurate information. The resulting claims case against them was eventually settled for more than $1 million.
4.Workplace Law Non-Compliance
Following her dismissal, a female employee sued her company’s management team for wrongful termination. She based her case on gender discrimination.
As you can see, D&O claims examples can be diverse. If you’d like more examples and information, contact a professional liability specialist in your area.