The litigation tentacles reaching out of the subprime mortgage mess could entwine corporate prey well beyond the financial institutions and individuals blamed for creating the debacle and resulting credit crisis, some insurance and legal experts say.
Errors and omissions liability litigation could envelope companies that facilitated home purchases by subprime risks who eventually defaulted, they say.
And the directors and officers at companies outside the financial services sector that shareholders think failed to disclose how they would be affected by the credit crisis should expect shareholder class action litigation, they say.