DAC Beachcroft's D&O and FI newsletter features topical issues for our global clients and contacts.
Is AI washing the next big risk for D&O Insurers?
Artificial intelligence is fundamentally shaping how businesses operate and it is presenting opportunities to deliver enhanced profit. However, companies that exaggerate their AI capabilities, known as "AI washing", to induce stakeholder investment or entice consumers pose a significant risk with implications for D&O insurers.
Milieudefensie's pursuit of emission control on Shell continues
Friends of the Earth Netherlands intends to bring a new lawsuit seeking to impose a ban on all new oil and gas extraction by Shell. This will be the first time litigation has been used to try and prevent a company from investing in all new oil and gas fields and is a sign of the novel 'climate' claims being brought by activists and their potential impact on corporate operations.
Claims of abuse in Malaysian factories supplying Dyson will proceed in England
The Supreme Court has refused Dyson permission to block abuse claims from continuing in England brought by overseas factory workers in its international supply chain. It is a strong signal that the courts will assume jurisdiction where there are concerns about access to justice in foreign courts and the corporate structure suggests the UK entity had significant control over activities within its supply chain.
No ifs, no buts –'no profit' liability remains strict
In Rukhadze v Recovery Partners the Supreme Court clarified the strict nature of fiduciary duties. Fiduciaries must act with undivided loyalty towards their principles and account for any profits made from their position, regardless of whether the same profit could have been made without the breach of duty.
Court of Appeal rejects investors' "loss of chance" claim against crypto exchanges
In BSV Claims Ltd v Bittylicious Ltd & Others the Court of Appeal has dismissed a £9bn "forgone growth effect" claim brought by investors against major cryptocurrency exchanges over alleged anti-competitive delisting practices. The decision helpfully clarifies the applicability of the "market mitigation rule" and loss of chance doctrine to cryptoasset claims.
The Australian High Court endorses soft class closure notices
Lendlease Corporation Limited v Pallas held the Australian courts are empowered to approve ‘soft class closure’ notices, meaning class members that fail to register to join the class action risk being excluded from the financial benefit of a settlement, even though they are bound by it.
CJC recommends light touch regulation of Litigation Funding in UK
The CJC recently published its much-awaited report on litigation funding in the UK. The recommendations, if adopted, will reverse PACCAR, bringing clarity to the enforceability of litigation funding agreements, and introduce a 'light-touch' regulatory regime.
Gutmann v Apple Inc - litigation funders can be paid their fees before damages are distributed to class
The Court of Appeal has ruled unanimously that litigation funders can (in principle) recover their fees in priority to the distribution of damages to class members, thereby removing the risk and uncertainty that there may not be sufficient funds left over to pay funders their return.
Employment law developments in 2024/25 and beyond
The past year has introduced important changes to employment law – in particular the duty to prevent sexual harassment at work, and a new right to neonatal care leave and pay- and the Employment Rights Bill (ERB) will have a significant impact when it takes effect in 2026. Employers must comply with these changes.
Ireland - Employment law developments 2025
With the constant change in employment law in Ireland, which impacts all employers doing business in this jurisdiction, employers need to keep apprised of the key issues on the legislative agenda.
SFO issues 'updated' corporate cooperation guidance
With only a few DPAs having been agreed in the UK, the SFO's recently issued guidance helps clarify what constitutes genuine cooperation, and addresses how the SFO will progress self-reports, subsequent investigations or DPA negotiations.
Directors need to sharpen up on the risk of falling foul of Non-Financial Misconduct
The Financial Conduct Authority (FCA) is taking a stricter stance on those failing to promote integrity and high standards of workplace culture within the financial services sector. With a surge in allegations of non-financial misconduct, financial services companies must take allegations of abuse and harassment very seriously and implement policies and procedures swiftly.
