Re: your first comment, I think you may be referring to the Ironridge financing and litigation, which has long passed and the company survived it and any fall out.
On the second, if the CEO didn't purchase Directors and Officers liability insurance, the executives are in real trouble with the SEC and FINRA. ALL public companies listed on any exchange/otc market that declare themselves 'current' must have this in place, or have had it in place at one point in time.
Either expand and/or specify on your comments, or I won't take you seriously.