Skip to Main Content

Insights

Aug. 19, 2021

What it Means to be a Special Litigation Committee (SLC) Member

By Edward Glickman, Scott N. Sherman, Josh R. Lewin

Corporate Compliance Insights

From investigation to insurance eligibility, authors Edward Glickman, Scott Sherman, and Josh Lewin describe a few scenarios you can expect to encounter when you are asked to join a special litigation committee.

In this two-part series, Part 1 explains the underlying reasons for SLCs, the lawsuits in which SLCs are involved, the powers of the SLC, and the process the SLC must undertake to remain independent and disinterested in the process. Part 2 explores the investigation process an SLC undertakes; the SLC decision-making process; the options available to the SLC including dismissals, settlements, and pursuing litigation; and how company insurance can play in. Overall, this series is designed to provide a high-level overview with key insights to directors on what they need to know when facing the question – what does it mean to be a member of an SLC?

Read Part 1 - I’ve Been Asked to Join a Special Litigation Committee (SLC). What Do I Need to Know?

Read Part 2 - SLCs and Responding to Shareholder Demands: How to Investigate Alleged Director Misconduct