Future Of Advancement And Indemnification Rights

Law360, New York (July 1, 2009, 12:00 AM EDT) -- Recently, in In re HealthSouth Corp. Securities Litigation, -- F. 3d --, 2009 WL 1675398 (11th Cir. June 17, 2009), 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.

Issuers defending securities fraud class actions and their indemnified executives, along with the lawyers representing these defendants, should take note of the HealthSouth opinion and what...
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