Media Coverage
Source: Law360
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
10.19.16
According to Law360, embattled blood-testing technology company Theranos Inc. has been sued by an investment firm that claims it agreed to buy Theranos stock based on allegedly false statements about its technology. Historically, private startups like Theranos have rarely faced these types of securities law claims but such claims are on the rise. As a result, privately held firms should explore broadened directors and officers (D&O) insurance coverage to protect themselves.
Insurance Recovery & Advisory partner Robert Wallan says private companies should thoroughly evaluate their options for D&O policies to ensure they have the most comprehensive coverage.
"It is an area where it pays to shop," he told Law360. "Shopping solely on the basis of price may not be the best way to go for a company looking for a D&O policy. With individual carriers, there is typically room to negotiate, whether a company is worth $1 billion or $50 million."
Read Law360’s full coverage of the suit here.