We will discuss a significant decision involving shareholder derivative litigation against officers and directors of McDonald's Corporation. For the first time, Delaware Chancery extended so-called Caremark duties to an officer of the corporation and not just directors. Meta is the most recently filed such lawsuit, and the litigation is in its early stages. Although the coverage implications are somewhat indirect, potential officer liability will likely warrant separate counsel for the officer(s) involved and will result in increased defense costs. There could well be other areas that bring insurers and the individual insureds into conflict such as reasonableness of settlements.
Sponsored by the Insurance Coverage Litigation Committee
