The Supreme Court ruling tightening shareholder lawsuit procedures should help those insurers with a large directors and officers' exposure, said an expert in the field.
The court tightened standards for investor fraud suits against corporations by ruling that plaintiffs must show "compelling evidence" that executives tried to mislead shareholders.
Steve Shappell, managing director of Aon Financial Services Group legal and claims practice, said the directors and officers (D&O) liability market rates are already soft with class actions at an all-time low since the passage more than a decade ago of the U.S. Private Securities Litigation Reform Act (PSLRA).
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