Director & Officer Liability
Reid Collins is a national powerhouse in prosecuting Director & Officer liability claims. When directors and officers breach their duties, whether negligently or intentionally, we hold them accountable. Having litigated billions of dollars in D&O matters across the country, we dismantle defenses, unlock insurance coverage, and deliver real recoveries for our clients.
Our deep experience in D&O litigation gives clients a decisive advantage when corporate leadership fails. From the outset of every case, we dig deeply into the underlying facts and governing law to develop claims that can win at trial. We trigger the most favorable burdens of proof and standards of review for the claims. And we neutralize common defenses to such claims, including the business judgment rule and the exculpatory provisions buried in corporate charters and bylaws.
Because D&O insurance is often the only meaningful source of recovery, we scrutinize those policies with equal force. We identify the exclusions that insurers use to deny coverage, position the claims squarely within available coverage, and apply maximum pressure to drive a resolution of the claims. And when insurers try to sidestep their obligations, we do not hesitate to haul them into court and compel them to provide coverage.
With a dedicated office in Delaware, the epicenter of U.S. corporate law, we bring exceptional command of Delaware jurisprudence and a track record of winning in Delaware courts, including the Delaware Court of Chancery. And when disputes spill into multiple jurisdictions, we lead with unified strategy and trial-tested precision. Wherever the fight occurs, we deploy expertise, discipline, and firepower to deliver results for our clients.
Renren
We achieved a $300 million settlement of D&O claims in this derivative action, one of the largest cash settlements of a derivative action in history. As lead counsel, we pursued claims for spinning off assets to an insider-affiliated company for inadequate consideration. Defeating novel defenses about jurisdiction and standing, we established an important precedent for holding insiders accountable after cross-border misconduct.
Insys Therapeutics
We secured a $175 million judgment against the former directors of Insys Therapeutics, a key contributor to the national opioid crisis. Our claims alleged that the directors failed to exercise oversight regarding the company’s executives, who perpetrated an illegal sales and marketing scheme involving a highly addictive fentanyl-based spray.
GWG Holdings
We obtained a $50.5 million settlement of claims against the former directors and officers of GWG Holdings, a financial firm that purchased life insurance policies by issuing insurance-backed bonds. Our 301-page complaint, which detailed a series of looting and self-interested transactions by the former insiders, served as the roadmap for a subsequent federal indictment of the company’s former CEO.
Adeptus Health
We recovered more than $34.5 million in settlements with the former directors, officers, and controlling shareholders of Adeptus Health, a former public company that owned the nation’s largest freestanding emergency room network. Our claims challenged the self-dealing nature of a private equity sponsor’s registration rights agreement and synthetic secondary offering of securities.
Fresh & Easy
We navigated a minefield of D&O policy exclusions to achieve a $125.5 million settlement of claims against the former insiders of a multi-state chain of grocery stores. This settlement, which involved a $21.5 million cash payment and a waiver of $104 million in counterclaims, exceeded the available insurance coverage.
Alta Mesa
We achieved a $15 million settlement against the former officers of an oil and gas company. Prior to our retention, the company’s counsel concluded that no viable claims existed. The judge initially agreed, finding “[t]here is simply no evidence” that the drilling program “was not done properly.” Yet we found critical evidence overlooked by prior counsel, overcame a motion to dismiss before that same judge, and successfully resolved the claims.