Credit Crisis Litigation

Amid the fallout from the credit crisis and the growing economic storm, it’s inevitable that litigation will follow. What started with subprime has become potentially a much bigger litigation net for enterprising attorneys. Fellow blogger Kevin LaCroix over at the D&O Diary addresses this issue in a recent posting titled “Litigation Wave Inflection Point?† In it he notes that shareholder lawsuits have already been filed against the directors and officers of some of the most prominent companies affected by recent events. He then points to additional developments that suggest a possible new wave of credit crisis lawsuits where the defendant companies are not themselves directly affected by the credit crisis fallout, but instead suffer from exposure to other companies that have been directly affected. The ultimate wildcard in all of this, according to LaCroix, is the impact that the current proposed federal bailout will have on litigation going forward. Insurers will be closely monitoring all these developments. Check out further I.I.I. information on the liability system.  

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