The US Securities and Exchange Commission has levied $125,000 in civil penalties on Cheesecake Factory as part of a settlement to resolve the agency’s allegations that the company made materially misleading statements to investors about the impact of the COVID-19 pandemic on its business. While this is the first such case reported by the SEC, it is only one in a string of recent third-party liabilities companies have faced that implicate directors’ and officers’ liability insurance coverage.
Continue Reading Cheesecake Factory’s SEC Fines Are Latest D&O Liability to Stem from COVID-19 Pandemic
Securities and Exchange Commission
FINRA Is Coming: Are Your Cryptocurrency Activities Covered?
By Geoffrey B. Fehling on
Posted in D&O, Industry News
The calendar may have started anew in 2018, but federal regulators have affirmed that they are still firmly focused on one of 2017’s emerging issues—cryptocurrencies and, more specifically, initial coin offerings (ICO).
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Continue Reading FINRA Is Coming: Are Your Cryptocurrency Activities Covered?
Initial Coin Offerings and Insurance
By Geoffrey B. Fehling on
This week, SEC Chairman Jay Clayton issued a statement on Initial Coin Offerings (ICO) addressing the legality, fairness, and risks associated with those offerings. Although the agency’s bulletin was one of many recent public statements by federal agencies on ICOs and cryptocurrencies generally, this new warning highlights additional issues and concerns with the ICO phenomenon that are particularly relevant to insurance coverage.
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