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Securities Class Action Claims In Canada?

Securities Class Action Claims
Securities Class Action Claims:

Securities class actions claims are defined as claims brought by a publicly held corporation’s shareholders alleging that actions by the firm’s directors and officers caused a loss in market value of the firm’s shares.  To date, 16 securities class action claims in the US have been settled for amounts in excess of $100 million.

Most people view Canada as a significantly less litigious environment, but the reality is Canada is becoming more and more like the US.  In fact the 2013 NERA report ( The complete report is available on the Risk Management Resource page of our website) provides an overview of securities class actions claims in Canada since 2005 and demonstrates a consistent trend of securities class action claims being filed in Canada and a significant increase in the last 5 years.

Securities Class Action Claims Highlights From The Canadian NERA Report Include:
  • 10 New Securities Class Action Claims were filed in 2013
  • The 54 Securities Class Action Claims represents more than $19 Billion in claims
  • 68 of the 111 Securities Class Action Claims filed since 1997 were in the last 5 years.
securities class action claims
What Can Our Board Do To Protect Us From Securities Class Actions Claims?

Coverage for such claims is available under directors and officers (D&O) liability insurance policies.  Board Insurance or Directors & Officers(D&O) Liability Insurance is a type of liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer. Directors and officers insurance can be written to cover the directors and officers of publicly traded companies, privately held firms, not-for-profit organizations, and educational institutions. In effect, the policies function as “management errors and omissions liability insurance,” covering claims resulting from managerial decisions that have adverse financial consequences.

To learn more about how to protect your organization, your board and your personal assets from securities class actions claims that may be brought against you and or directors and officers (D&O) insurance speak to an ALIGNED Insurance Advocate or connect with us at www.alignedinsuranceinc.com.

 

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