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Increasing D&O Criminal Exposures: Will Your D&O Insurance Respond?

Federal law enforcement authorities are now investigating with greater frequency and vigor potential criminal charges against directors and officers in a variety of contexts. Most notably, on September 9, 2015, Deputy Attorney General Sally Quillian Yates issued a memorandum to all assistant U.S. attorneys and other key agencies which describes the federal government’s focus on individual criminal accountability for corporate wrongdoing.

In this so-called Yates Memorandum, the Department of Justice (DOJ) recognized that “[o]ne of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetrated the wrongdoing” and that it is “important that the Department fully leverage its resources to identify culpable individuals at all levels in corporate cases.”