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As the country rebounds from the COVID-19 pandemic, class action litigation is on the rise and M&A activity is poised for a strong comeback as well. To control litigation costs and liability exposure, and remain “deal ready,” companies need tools in their arsenal to combat transaction-derailing risks as early as possible. One such tool is litigation buyout insurance (LBO insurance), which is designed to offset litigation-related risk and limit liability faced by a company once a deal has been consummated. LBO insurance essentially serves to ring-fence litigation by transferring the risk to an insurer, thereby ensuring the deal will close. LBO insurance policies are customized to address the particular and unique legal issues facing a specific company, with the ability to cover threatened, pending, or ongoing litigation.
Those in the deal-making world should be aware of this solution and understand when it is the right tool and how best to deploy it when the time arises. Any lawyer who handles M&A transactions, whether on the deal side or as a litigation specialist, and any organization considering or already in the M&A process would benefit from this presentation.
Roger A. Colaizzi, partner at Venable LLP and Ross L. Weiner, legal director at Risk Settlements will discuss:
- How threatened, pending, or ongoing litigation can affect potential M&A transaction (10 minutes)
- What is LBO insurance, how does it work and when is it right for you (15 minutes)
- What benefits inure to companies that use LBO insurance over more traditional solutions (12 minutes)
- Three real world examples of how LBO insurance salvaged certain M&A transactions (15 minutes)
- Tips for procuring LBO insurance (8 minutes)