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2.2 Derivative Suits Derivative suits—breach of fiduciary duty suits brought by shareholders on behalf of a company against the company's directors and officers—are an increasing threat for directors and officers. This is a particularly personal threat for directors and officers because companies cannot indemnify their directors and officers for these settlements; either insurance pays or the directors and officers have to make personal payments to settle the suit. Event-driven derivative suits catch headlines, cause embarrassment, and lead to enormous settlements. The $240 million settlement in the Wells Fargo derivative suit is a cautionary tale. The Wells Fargo settlement is just one of many large derivative suit settlements we've seen in recent years. Other memorable settlements include: • PG&E: $90 million • Yahoo: $29 million • 20th Century Fox: $90 million

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Profile for Woodruff Sawyer

Looking Ahead 2020: D&O Considerations for the Next Calendar Year  

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