Indemnification Under Attack by Prosecutors

• Posted by Geoffrey G. Gussis on October 12th, 2005


• Filed in Corporate/M&A

Corporations often agree to indemnify their officers and directors through provisions in their organizational documents or fee advancement agreements. As Francis G.X. Pileggi of the Delaware Corporate and Commercial Litigation Blog reports, these provisions may now be subject to a novel attack by zealous prosecutors in cases where officers and directors are accused of committing crimes against the company.  In essence, prosecutors may claim that the corporation is the victim of the crime - and obtain a restraining order against the company advancing fees to those accused of the crime.  Visit Pileggi’s blog for the full scoop.

Link: Delaware Litigation: Indemnification Under Attack by Prosecutors.