April 15, 2003
Willkie Attorneys Author D&O Insurance White Paper for AIG Group
Kevin B. Clark
, Joseph G. Davis
Willkie partner Kevin B. Clark and associate Joseph G. Davis prepared a comprehensive D&O Insurance “White Paper” for the American International Group (AIG) on the Exposure of Non-U.S. Companies and Their Directors and Officers to Investor Liability Under United States Securities Laws
. The study, which was released in March 2003, is currently being distributed worldwide to insurance brokers and corporate policy holders. The paper first provides an overview of the exponential growth in the globalization of corporate operations and securities markets over the last decade, and economic trends leading to unprecedented levels of two-way U.S.-international investment. In light of this unparalleled reciprocal investment, the paper offers an in-depth analysis of the exposure non-U.S. defendants encounter with respect to U.S. securities law claims. It addresses how U.S. courts are hearing claims against non-U.S. defendants with increasing frequency. In this area, it particularly covers acts that significantly affect U.S. investors or entities, claims that allege unlawful conduct occurring in the United States and U.S. interests in the disputes (the “one overriding factor”). The Willkie authors also analyze how U.S. Courts decide if each non-U.S. defendant can be sued and a court’s limited discretion to decline to hear a case against a non-U.S. defendant even when it has jurisdiction. Finally, Mr. Clark and Mr. Davis highlight that despite “staggering numbers and the magnitude of the risks they reflect, non-U.S. defendants may have important jurisdictional defenses to claims against them under U.S. securities laws.” Mr. Clark is a partner in the Litigation Department of Willkie Farr & Gallagher in Washington, D.C. specializing in multi party, complex, civil litigation (and alternative dispute resolution) of all types. He has particular expertise in antitrust, bankruptcy, securities, insurance, contractual, environmental, and toxic-tort matters, on both a domestic and international scale.