alerts & publications
Future Of Advancement And Indemnification RightsJuly 10, 2009
O’Melveny partners Seth Aronson and Abby Rudzin co-authored an article titled, “Future Of Advancement And Indemnification Rights,” which appeared in the July 10 edition of Law360. The article discusses the recent case, In re HealthSouth Corp. Securities Litigation, -- F. 3d --, 2009 WL 1675398 (11th Cir. June 17, 2009), where the Eleventh Circuit held that companies settling securities class actions can include bar orders under the Private Securities Litigation Reform Act (the "Reform Act") that extinguish their former officers’ statutory and contractual rights to advancement and indemnification of legal fees.
Aronson and Rudzin assert that the HealthSouth decision will be highly noted by securities litigators. The authors write, “The Eleventh Circuit’s willingness to permit issuers to extend Reform Act bar orders to block defense-cost advancement claims should tip the scales of bargaining power and encourage a change in behavior from each of the parties.”
To read the full article, click here.
Thank you for your interest. Before you communicate with one of our attorneys, please note: Any comments our attorneys share with you are general information and not legal advice. No attorney-client relationship will exist between you or your business and O’Melveny or any of its attorneys unless conflicts have been cleared, our management has given its approval, and an engagement letter has been signed. Meanwhile, you agree: we have no duty to advise you or provide you with legal assistance; you will not divulge any confidences or send any confidential or sensitive information to our attorneys (we are not in a position to keep it confidential and might be required to convey it to our clients); and, you may not use this contact to attempt to disqualify O’Melveny from representing other clients adverse to you or your business. By clicking "accept" you acknowledge receipt and agree to all of the terms of this paragraph and our Disclaimer.