An ongoing issue for many organizations during the covid-19 pandemic has been potential debt due to exposure to the disease in the workplace.
“Companies that can, would be smart to continue to allow flexible working conditions until covid fears diminish , otherwise they are likely to face the prospect of covid-related corporate responsibility processes, says Christopher Vlasich, Chicago-based Vice President, Financial Lines and Responsibilities, claims North America, at Allianz Global Corporate & Specialty, a unit of Allianz SE.
To demand that employees should be vaccinated and return to the office involves a risk. Not requiring vaccinations of employees is also risky.
If enough covid-related EPL lawsuits are filed, or filed as a class action lawsuit against a company, "they could pose a D&O risk," Vlasich said.
A major concern for D&O-related disputes is over ̵1; optimistic statements. "Companies would do well to lay out their future prospects carefully, until they are sure that covid-related problems lie in the rearview mirror," he said.
Sarah Downey, CEO of Lockton Cos. LLC in New York, said that failure to make accurate and complete disclosures can prove costly.
"You will spend about $ 1.5 million to $ 2 million in defense costs and legal fees just to win in court and get the trial to disappear, "she said.
"If it goes further, especially in a class action lawsuit, you can spend $ 5 million to $ 10 million, which does not include the settlement." , said that if a company's stock falls 15% or more, "it's important to notice if the rest of the market falls as well. Plaintiff's lawyers will have less argument to sue if the entire marketplace is down."
But he added, " If the stock market goes well and your stock falls, the plaintiffs' lawyers will peel the onion and see if they have one open for a trial. "
How to deal with this? Mr. Atilano summed it up:" Many listed companies have a good PR agency and their law firm on speed dial. "Because when something negative happens," you are required to share it if it will affect the company's stock. This is where communications and law firms can help minimize the damage, "he said.