Nelson Mullins partners Edgar Neely and Scott Sherman wrote an article for the D&O Diary offering insight for directors concerned about securities litigation.

"As we kick off the new year, the risk of shareholder litigation remains a significant reality for public companies and their boards," they shared. "For example, a Cornerstone Research report in September 2025 showed that merger and acquisition-related litigation in Delaware has increased based both on volume and average settlement value.”

Neely and Sherman covered important concepts related to shareholder litigation that can help companies and their directors mitigate risk and assess potential strategies, including five key considerations that provide important and actionable context for directors to know when it comes to shareholder litigation. These range from protections like insurance and exculpation to considerations on strategy and risk mitigation.

"As the securities litigation and corporate governance landscape continues to evolve, it’s important for boards to consult with legal counsel on strategies for risk mitigation," they said.

You may read the article here.