Former Pittsburgh Steeler wide receiver (and longtime Cleveland Browns nemesis) Lynn Swann may be on the receiving end of a big break. If not, he stands to lose millions of dollars.
Swann has been on the board of Caesars Entertainment for almost a decade and is now facing the threat of personal liability as a result of Caesars’ bankruptcy. He and the other directors have been sued in Delaware Chancery Court, accused of being involved in the looting of Caesars when it divided into three separate units. If successful, Swann and the other directors could be held personally liable for the debt.
The good news is that there is probably corporate liability insurance that will protect their assets. Anyone who sits on a board of directors of a company must make sure that the company has obtained insurance to protect directors in the event things go sour. Companies, likewise, have the responsibility of taking care of their directors. Having insurance coverage for the directors is an absolute prerequisite.