White Paper
Navigating Shareholder Litigation Risk in the Life Sciences Sector
White Paper Summary
Life science companies operate in an environment where billion-dollar valuations can shift dramatically on a single data readout or regulatory decision. For shareholders, these inflection points create opportunities — but also grounds for litigation when expectations don’t align with outcomes.
The result is a sector where directors and officers face heightened exposure at nearly every stage of development. Whether a company is advancing a novel therapeutic through clinical trials or transitioning from R&D to commercialization, the potential for securities claims and derivative suits remains ever-present.
“Uncertainty generally leads to volatility in stock prices, and stock volatility is the number one driver of D&O litigation,” said Catherine Marincel, Senior Vice President, Executive & Professional Lines at Berkshire Hathaway Specialty Insurance (BHSI). “For these companies, the regulatory changes are directly impacting their uncertainty and potential liability.”
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