Carriers and brokers selling Side-A directors and officers liability insurance coverage by delivering warnings about the increasing severity of shareholder derivative lawsuits may be overstating the trend, according to one attorney involved in a major case.
“I don't think it's all of a sudden going to open the floodgates, said Mark Lebovitch, a plaintiffs' lawyer for Bernstein Litowitz Berger & Grossmann LLP in New York, referring to a shareholder derivative action brought by Amalgamated Bank and other shareholders late last year against directors and officers of New York-based Pfizer, a large pharmaceutical company.
The stakes in the case are potentially high, with the derivative lawsuit filing coming in the wake of a $2.3 billion settlement with the government arising from what the U.S. Department of Justice found to be fraudulent and criminal promotional activities used to sell 13 of Pfizer's most important drugs.
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