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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.