The immense value of a ‘strong partnership’…Facebook Settles Shareholders’ Claims Over 2012 IPO

The immense value of a ‘strong partnership’…Facebook Settles Shareholders’ Claims Over 2012 IPO

By Insurance24

HARARE, Insurers and brokers are under more pressure than ever before to demonstrate value in an increasingly digitized and direct industry. Value comes in various shapes and sizes. It could be in the form of ‘above and beyond’ claims adjusting, expert risk management, or assisting with the mitigation of emerging risks.

Partnership is one of the most valuable things an insurer or broker can provide. As a client’s risk portfolio evolves, insurers must adapt to those changes and offer services and coverages in line with the client’s exposures.

Global insurer Chubb has worked with Piedmont Healthcare for more than 15 years, guiding the hospital system through a rapidly changing risk portfolio, and supporting its growth from a standalone facility in 2002 to seven hospitals and several outpatient clinics in 2017.


The Piedmont Healthcare journey required coordinated effort from Chubb’s Healthcare Industry Practice, Construction Industry Practice and Southeast Sales teams. The insurer leveraged the tailored underwriting capability of each individual line to develop a multi-line solution for Piedmont Healthcare.

“Chubb’s ability to offer specific healthcare expertise across the various coverages that hospitals need is unique to the industry,” said Caroline Clouser, executive vice president, Chubb Healthcare.  “While some competitors can sell construction coverage, Chubb offers depth of expertise in many lines of business that healthcare customers need such as medical liability, financial lines, construction and environmental, to name a few.

“This broad appetite and commitment to the industry allows us to better understand our customers, such as Piedmont, and allows our customers to come to know and experience the breadth of our capabilities.

This is best illustrated as our underwriters can share knowledge about an organization’s financials, management structure and operations.”

There are many mutual benefits to having a multi-line relationship with a client, particularly when it comes to the claims process. We live in an interconnected world where one claim from a large commercial entity, such as Piedmont Healthcare, could trigger multiple insurance lines. Having the ability and the expertise to make a holistic response to a client issue is immensely valuable.

“One of the tangible benefits is the ability to further build our relationship with Piedmont and provide them access to the leadership behind the insurance contract,” Clouser told Insurance Business. “Additionally, Piedmont executives have an integral understanding of Chubb’s financial strength and claim paying ability. They understand that claims may often trigger multiple lines of coverage and by managing these complex claims with a single carrier, Piedmont is provided a more seamless claim process.”

The notion of a “seamless” customer experience is talked about a lot in the insurance industry. Few carriers offer the breadth and depth of Healthcare expertise to live up to that experience.

“At Chubb, our Piedmont relationship is just an example of that brand promise,” Clouser said.

“Chubb and Piedmont are a great example of a strong relationship. The sharing of information and understanding our organizations allows us to provide coverages timely as they grow and change,” she added. “Chubb can anticipate coverage requirements and provide value added benefits throughout the claims process. Piedmont has peace of mind knowing the financial strength of the Chubb organization and the leadership team they can trust to protect their reputation.” 

Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit Chubb’s website at  The material presented in this article is not intended to provide legal or other expert advice as to any of the subjects mentioned, but rather is presented for general information only. You should consult knowledgeable legal counsel or other knowledgeable experts as to any legal or technical questions you may have. 



Facebook Settles Shareholders’ Claims Over 2012 IPO

By Insurance24

HARARE, Facebook Inc and Chief Executive Mark Zuckerberg have reached a $35 million settlement of class-action litigation accusing them of hiding worries about the social media company’s growth prior to its May 2012
initial public offering.

The settlement was filed on Monday in the federal court in Manhattan and won preliminary approval from U.S. District Judge Robert Sweet.

It amounts to a small fraction of Facebook’s current market value of roughly $537 billion as of Monday’s market close.

Shareholders led by the Arkansas Teacher Retirement System and Fresno County Employees’ Retirement Association in California accused Facebook of concealing internal concerns about how growth in mobile
devices might reduce revenue, even as it quietly warned its banks to cut their forecasts.

Unlike in 2012, the Menlo Park, California-based company now generates most of its revenue from mobile devices and has estimated that mobile advertising generated more than 86 percent of its $40.7 billion total
revenue in 2017.

The settlement resolves claims against Facebook, officials including Chief Operating Officer Sheryl Sandberg and director Peter Thiel, and bank underwriters covering a five-day period surrounding the $16 billion IPO, from May 17 to May 21, 2012.

Facebook made its market debut on May 18 of that year at $38 per share and saw its share price languish below that level for more than a year before it rebounded.

“Resolving this case is in the best interests of the company and our shareholders,” Associate General Counsel Sandeep Solanki said in a statement.

A lawyer for the shareholders did not immediately respond to a request for comment. Sweet scheduled a Sept. 5 hearing to consider final settlement approval.

The accord was reached after mediation, and provides an average recovery of about 11 cents per share, or 7 cents per share after possible legal fees and costs, court papers show.

Insurers may cover some of the payout. Lawyers for the shareholders called the settlement “fair, reasonable,
and adequate,” citing the risk of a loss at trial, according to court papers.

Facebook shares rose $1.64 on Monday to close at $184.93 on the Nasdaq.