The D&O Diary has continued to follow the growing number of securities lawsuits alleging that companies understated the impact of tariffs, sanctions, and other geopolitical developments on their business and financial results. A newly filed securities class action lawsuit arising out of the take-private acquisition of Skechers USA, Inc. presents an interesting twist on that increasingly familiar theme. Rather than alleging that the company downplayed tariff-related risks, the plaintiffs contend that Skechers overstated the anticipated impact of tariffs in order to support lower financial projections, justify a reduced valuation, and ultimately facilitate a take-private transaction at a price that allegedly undervalued the company.

Continue Reading Tariff Risk Was Used to Depress Deal Value, New Securities Suit Alleges

The continued expansion of the False Claims Act (FCA) as a governmental enforcement mechanism presents growing liability and insurance coverage challenges for companies and their insurers. In the current environment, a September 29, 2026, federal district court decision represents a significant policyholder victory in a coverage dispute arising from a DOJ investigation, Civil Investigative Demands (CIDs), and a related FCA qui tam action. The court held that coverage was available to public-sector consulting company Guidehouse, Inc., under its Technology and Professional Liability policy for defense costs, a $7.6 million settlement, and expenses incurred in responding to CIDs.

Continue Reading District Court Upholds Coverage for FCA Investigation and Settlement

Over the past couple of years, The D&O Diary has followed the growing “DExit” movement, including the increasing number of public companies that have either reincorporated outside Delaware or publicly explored doing so, and the resulting implications for corporate governance, shareholder litigation, and D&O risk.

To date, a key unanswered question has been whether changing a company’s state of incorporation would meaningfully alter litigation exposure in practice. An October 2, 2026, decision by the Texas Business Court involving Coinbase may be the first significant indication that it can.  A copy of the Coinbase decision can be found here.

At the same time, an October 23, 2026, Delaware Chancery Court opinion approving the $250 million settlement of the long-running Activision Blizzard merger litigation underscores a parallel development: even as some companies depart Delaware, Delaware courts continue to preside over some of the largest and most consequential shareholder cases in the country. Indeed, Chancellor Kathaleen McCormick described the Activision settlement as the largest cash recovery ever obtained in Delaware Court of Chancery litigation challenging a third-party merger. A copy of the Chancery Court’s approval of settlement and attorneys’ fees can be found here.

Continue Reading Texas Courts Begin to Define the Consequences of Reincorporation

The SEC has not yet released an official report of SEC Enforcement activity for Fiscal Year (FY) 2026, which ended September 30, 2026, but several other independent sources have released their own analyses. The numbers reflected in the independent sources’ report vary, but they are directionally consistent – they all show significantly reduced SEC enforcement activity in FY 2026, the agency’s first full year under current Chair Paul Atkins. As discussed below, reduced enforcement numbers may be interpreted in varying ways, but the lower FY2026 enforcement numbers do have important implications.

Continue Reading Reduced SEC Enforcement Activity in the 2026 Fiscal Year

The D&O Diary has been closely following the Department of Justice’s increasing use of the False Claims Act (FCA) as an enforcement tool, including in areas involving cybersecurity compliance, DEI, tariffs, and other regulatory priorities. A recurring concern for companies, directors and officers is that FCA investigations and settlements can serve as the predicate for follow-on securities suits based on alleged disclosure failures.

Continue Reading Honeywell Aerospace Hit with Securities Suit Following FCA Cybersecurity Settlement

In the following guest post, Evan Bundschuh considers whether recent developments in corporate governance and D&O insurance policy design are altering the traditional role of standalone Side A Difference-in-Conditions (DIC) insurance. Evolving policy forms and changing liability exposures raise important questions about the continuing role and value of standalone Side A DIC coverage. The article includes contributions from The D&O Diary co-author Sarah Abrams. Evan is Vice President at GB&A, a retail insurance brokerage in New York. Our thanks to Evan for allowing us to publish the article on this site. Here is the article.

Continue Reading Has Side A DIC Risk Changed? Broader D&O Coverage and Emerging Exposures 

What began as regulatory inquiries involving Los Angeles Dodgers (and until recently Los Angeles Lakers) owner Mark Walter and affiliated insurance companies has now expanded into civil litigation, bringing renewed attention to private credit investments, related-party transactions, and disclosure practices. A proposed class action lawsuit filed in the Southern District of Florida against Walter and various affiliated businesses alleges that purchasers of annuity products issued by Delaware Life Insurance Company did not receive material information regarding related-party investments and an ongoing federal investigation. A copy of the September 16, 2026, complaint can be found here.

Continue Reading From Investigation to Litigation: Private Credit Scrutiny Fuels New Claims

Episode 9 of The D&O Diary Podcast series is now live.  In this latest episode, we are joined by Geoff Fehling, a partner with Hunton Andrews Kurth LLP whose practice focuses on policyholder advocacy, management liability insurance, D&O coverage, and complex insurance disputes.

Continue Reading The D&O Diary Podcast, Episode 9: Geoff Fehling and Key D&O Insurance Coverage Issues

The recent $25 billion data privacy judgment in New Mexico state court against Meta was attention-grabbing, if for no other reason than for the sheer size of the award. The award also highlights the fact that privacy-related issues are increasingly important, in ways that can potentially, through subsequent litigation, translate into D&O matters. As discussed below, if for no other reason than the scale of the exposure, privacy risk increasingly is becoming management liability risk. A copy of the New Mexico state court’s October 21, 2026, judgment in the Meta case can be found here.

Continue Reading Thinking About the $25 Billion Meta Privacy-Related Judgment

One of the most distinctive and material securities class action lawsuit filing trends this year has been the massive recent surge of artificial intelligence (AI)-related securities suit filings. Sure, there have been AI-related securities suit filings before, but this year the numbers of these kinds of lawsuits have spiked. In the latest illustration of this developing phenomenon, over the last several days plaintiffs’ attorneys have filed new AI-related securities suits against Google’s parent company Alphabet, and against the Internet language learning company Duolingo. In both cases, the plaintiffs alleged that the companies misrepresented their respective AI-related capabilities, opportunities, or prospects.

Continue Reading AI-Related Securities Suit Filing Surge Continues