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Senior Executive and Officer Litigation
In the old days, decisions made by executives and directors in the board room often were cloaked with a veil of legitimacy. Now, however, these decisions are under constant surveillance and scrutiny from outsiders and are even vulnerable to leaks from insiders. As executives and directors are thrust into the media and legal forefront, not only do they face potential personal liability for their decisions, but the corporations themselves face liability for their actions.
Personal Liability of Executives and Directors
Spurred in part by recent corporate scandals, the number of lawsuits against corporate officers and directors has increased dramatically. There are a number of reasons for this rapid growth. First, laws in a number of states, including the District of Columbia and Maryland, allow corporate officials to be sued in their individual capacity. See, e.g., Anyan v. New York Life Ins. Co., 192 F. Supp. 2d 229 (S.D. N.Y. 2002) (New York law); Palladino ex rel. U.S. v. VNA of Southern New Jersey, Inc., 68 F. Supp. 2d 455, 474 (D. N.J. 1999); Wallace v. Skadden, Arps, Slate, Meagher & Flom, 715 A.2d 873, 889 (D.C. 1998) (D.C. law).
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