Developments in Directors' and Officers' Liability 2026

This document is a newsletter that discusses recent developments related to Directors' and Officers' Liability (D&O) as of 2026. It outlines the implications of corporate responsibility for members of Boards of Directors and Executive Committees. The document highlights case studies, including the liquidation of MBaer Merchant Bank AG, which illustrates systemic shortcomings in anti-money laundering obligations and risk management. It also details the derivative settlement involving Credit Suisse Group AG, emphasizing the ongoing liability risks for directors and officers stemming from complex risk management failures. Additionally, the newsletter addresses the business judgment rule and its implications for liability in cases of inaction. It notes three key trends affecting the D&O landscape: increased exposure of executive bodies, heightened regulatory expectations, and rising defense costs in disputes. The document concludes with a discussion on the impact of stricter bankruptcy rules and the regulatory challenges posed by PFAS, underscoring the importance of governance and documented decision-making processes.