Multibillion-dollar settlements of class actions by public companies may grab the biggest headlines, but directors and officers of private companies are exposed to the same sources of risk that threaten their publicly traded counterparts.

Directors and officers of private companies have the same duties of loyalty, care and obedience. Additionally, these directors and officers and their companies face exposures emanating from employment practices liability, fiduciary liability and commercial crime–all exposures that both private and public companies share.

While the damages may not reach into the billions, with directors and officers liability verdicts and settlements against private companies reaching as high as $500 million, consequences can be devastating even for seemingly immune family-run private companies.

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