PHILADELPHIA--(BUSINESS WIRE)--ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, today announced that it has launched the second in an occasional series of audio “podcasts,” or Internet-distributed audio programs, discussing selected risk management topics. Carol Zacharias, Senior Vice President and Counsel, ACE Professional Risk, discusses her white paper, recently published in The John Liner Review: “Trends in Securities Class Action Litigation and Directors and Officers Liability Insurance,” and provides corporate risk managers with an informative overview of the trend toward unprecedented securities litigation settlements, the factors driving it, and the potential consequences to companies thus affected.
“Securities class actions are the most common type of class actions; since 2002, they are also the most costly and time-consuming to resolve; cases proceeding with a concurrent Securities and Exchange Commission (SEC) investigation tend to settle for double the price of those without the SEC proceeding,” said Ms. Zacharias.
The white paper examines the number of class actions pending in federal courts from 2002-2005; the allegations involved, including specific accounting allegations; securities judgments, types of plaintiffs; and, the industries targeted. In 2005, it reports, a record-setting $17.9 billion was paid to resolve class action litigation, up threefold from $5.5 billion in 2004. In addition, the paper explores new approaches to minimizing and mitigating directors and officers liability.
Ms. Zacharias added, “Securities class actions and securities regulatory prosecutions represent a significant and costly drain on corporate America and a burden to the judicial system. At the same time, the current environment for corporate indemnification of directors and officers is, to some degree, uncertain, spotlighting the criticality of traditional officers and directors liability insurance and creating demand for new forms of coverage.”
To access the ACE Professional Risk podcast audio program featuring Ms. Zacharias’ discussion of securities class action litigation and directors and officers risk management issues, please visit www.ace-ina.com/podcasts. Please note, the program is approximately 24 minutes in length.
Staffed by a team of innovative underwriters, ACE Professional Risk is the operating unit within ACE USA, which distributes management liability, professional liability and surety products through retail brokers throughout the U.S. and Canada. For more information about ACE Professional Risk and its range of products and services, please visit: www.aceprofessionalrisk.com. The above is only a summary; please see actual policies for terms and conditions.
ACE USA is the U.S.-based retail operating division of the ACE Group of Companies, headed by ACE Limited (NYSE:ACE), and is rated A+ (Superior) by A.M. Best Company and A+ (Strong) by Standard & Poor’s. ACE USA, through its underwriting companies, provides insurance products and services throughout the U.S. Additional information on ACE USA and its products and services can be found at www.ace-ina.com. The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients around the world.