Shareholder Derivative Suit Following an Operational Incident

Analysis Group was retained by counsel for energy company executives being sued in a shareholder derivative suit stemming from penalties and other costs associated with an operational incident. The Analysis Group team – including Managing Principals T. Christopher Borek and Michael Beauregard and Principals Todd Schatzki and Eric Korman – evaluated factors affecting the extent to which targets of the derivative suit could be held accountable for financial impacts associated with regulatory responses to the incident. Research included benchmarking analyses for executive compensation and safety performance, analysis of spending on maintenance and safety (relative to amounts approved by regulators), and the timing of regulatory violations preceding the incident. The matter settled.