Mergers and Acquisitions Insurance

Increased shareholder litigation is a growing fact of life for UK companies, particularly those with US exposures. With this increase in litigation comes a growing awareness of the responsibilities incumbent on directors and officers of companies.

This is especially true when the company makes a public offer of its securities. Signatories of a public prospectus have a personal responsibility for its contents and could, therefore, be found personally liable for the losses of securities holders arising from inaccuracies or misrepresentations within it.

This is just part of what the policy provides:

• Cover for both US and non-US exposures, including SEC registered listings on all US or other world stock exchanges. Cover can also be obtained for securities being placed privately in the US to Qualified Instituional Buyers (QIB's) under the Rule 144a exemption.
• Insured includes the company and its directors, officers and employees for securities claims brought against them in connection with the offering.
• At the request of the company, cover may be extended to include the issue underwriters as insureds.
• Cover includes liability relating to the prospectus/listing particulars as well as negotiations, discussions and decisions in connection with the offering prior to their filing or issue.