Due to regulatory changes and government enforcement priorities, D&O claims are shifting, while competitive pressures and evolving industry standards add layers of complexity. Understanding these developments is essential for navigating the current risk environment and anticipating future trends.
Conclusion
Recent cases show the FCA’s expanding role in targeting fraud, cybersecurity lapses, and tariff evasion, can lead to follow-on litigation such as SCAs. Meanwhile, trade secret claims remain a persistent risk as employees move between competitors, with insurance coverage frequently restricted by policy exclusions.
To navigate these challenges, organizations should proactively review their D&O policies to ensure they are prepared for the complex risks emerging from both regulatory actions and business friction.
1 - Civil Division | The False Claims Act
2 - Office of Public Affairs | The United States Files False Claims Act Complaint Against Three National Health Insurance Companies and Three Brokers Alleging Unlawful Kickbacks and Discrimination Against Disabled Americans | United States Department of Justice
3 - Id.
4 - Office of Public Affairs | Illumina Inc. to Pay $9.8M to Resolve False Claims Act Allegations Arising from Cybersecurity Vulnerabilities in Genomic Sequencing Systems | United States Department of Justice
5 - Id.
6 - District of South Carolina | United States Files Complaint Against Myrtle Beach Office Furniture Supplier, Owner for Customs Fraud...
Due to regulatory changes and government enforcement priorities, D&O claims are shifting, while competitive pressures and evolving industry standards add layers of complexity. Understanding th...