Climate Change-Related Losses and Other Event-Driven Litigation Risks

Hurricanes Harvey, Maria and Irma, the earthquakes in Mexico, the typhoon in Bangladesh and massive flooding in India kept natural disasters in the news throughout 2017 and caused damages, deaths and record losses to the insurance industry. While 2018 started off more quietly, hurricanes and wildfires in the second half of the year caused devastating damage, and annual global losses due to natural disasters totaled approximately $160 billion. In this article, partner Howard Epstein and special counsel Theodore Keyes discuss how plaintiff shareholders have seized on climate change-related catastrophes and other negative events as a basis to file suits alleging claims of mismanagement and/or misrepresentation against directors and officers.