Typical risksIn connection with an IPO or other issue of securities (shares, convertibles, debt notes etc.) the company exposes itself, its Directors & Officers and its external consultants. When selling securities to external investors, prospects and the like are produced informing about the company. The information is focused on a description of the business, future plans and an extensive financial part. If the information is considered faulty, inaccurate, incomplete or otherwise deficient, investors may seek damages from the company, owners, D&O and other key people.
Besides the company, claims can accordingly be directed against individuals that may be personally liable. Large amounts can be at hand. A Prospect insurance protects the company and D&O.