D&O and Cyber Insurance: Loss Causation, Related Claims and Policy Wording
How should a delayed stock-price decline affect a securities class action, and how can broad cyber exclusions create gaps in D&O coverage for investor-loss claims? Peter Kelly and David Finz, Alliant Specialty Claims & Legal, break down key legal developments shaping executive liability and cyber risk. Peter examines a securities class action in which the court found loss causation was not plausibly pled after an alleged corrective disclosure was followed by an initial stock increase and a later decline. The complaint did not explain the delayed market reaction or distinguish the decline from broader market forces. He also discusses a related claims dispute in which an unreported, pre-policy administrative complaint barred coverage for a later EPL lawsuit under a D&O policy endorsement. David analyzes Boston Scientific’s cyberattack-related guidance miss and explains how broad cyber exclusions can create D&O coverage gaps for investor-loss claims.









