When IPO Companies Stumble Out of the Blocks

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Aug 20, 2017

On August 20, 2017, the D&O Diary released an article that discusses how most informed observers know that IPO companies are more susceptible to securities class action litigation than are more seasoned companies.

IPO companies usually have short operating histories and so their post-offering performance can be unpredictable and may include unexpected developments. When IPO companies stumble out of the blocks, they can attract a securities suit just a short time after their debut.

One significant practical consequence of all of these considerations is that D&O insurance is particularly important for companies contemplating an IPO. The company’s D&O insurance program could prove to be particularly valuable to IPO companies that stumble out of the blocks or that otherwise acquire a securities suit shortly after their debut.

Review the article on the D&O Diary's website.

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