Jurisdictions

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A group of Merrill Lynch entities (Merrill Lynch) recently filed a motion to dismiss a securities class action pending in United States District Court for the Southern District of New York.  The plaintiffs generally assert that Merrill Lynch failed to disclose the extent of its subprime exposure arising out of its holdings in collateralized debt obligations. 

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Read More Merrill Lynch Seeks Dismissal of Subprime Based Securities Class Action

Plaintiff Long Island Insurance Company (“LIICO”) instituted a declaratory judgment action and moved for summary judgment against certain defendants, including its insured, Oneil Johnson (“Johnson”), seeking an order that it had no duty to defend or indemnify Johnson in an underlying personal injury action. 

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Read More New York State Court Finds That Insurer’s Nearly Two-Month Delay in Denying Coverage was Unreasonable as a Matter of Law

According to a recent report by Bloomberg News, states, cities, hospitals, and other municipal borrowers have now refinanced approximately $96.2 billion of their $166 billion in auction rate bonds, which amounts to about 58% of all auction-rate bonds.  The current $3 billion a week average rate of municipal bond refinancing has slowed a bit from the $5.5 billion a week average in April and May. …
Read More Decline in Municipal Auction-Rate Debt as Various States Continue to Refinance

A New York state court recently dismissed claims brought by the liquidator of a hedge fund against the fund’s accountants on the ground that the claims were barred by the doctrine of in pari delicto.  Bullmore v. Ernst & Young Cayman Islands, No. 104314/05 (June 19, 2008). 

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Read More Hedge Fund Liquidators Barred from Bringing Negligence Claims Against Auditors

Following the recent passing of the Insurance Amendment Act 2008, the Bermuda Monetary Authority (BMA) has announced that it will introduce the Bermuda Solvency Capital Requirement (BSCR), an enhanced solvency regime to apply to Bermuda’s Class 4 reinsurers. The BSCR is intended to establish risk-based capital adequacy standards for high impact reinsurers. …
Read More Bermuda Monetary Authority Announces New Rules on Insurance Solvency for Class 4, Reclassification of Class 3 and New Class of SPVs

Robert Lewis Rosen Associates, Inc. (“RLR”) petitioned the United States District Court for the Southern District of New York to vacate an arbitration award issued in favor of William Webb (“Webb”) on the grounds that the arbitrator acted in manifest disregard of the law. 

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Read More New York Federal Court Finds That Doctrine of Manifest Disregard of the Law is No Longer Good Law

As previously reported here, on January 16, 2008, a jury in the Apollo Group securities class action found that Apollo Group misled investors and held the company liable for $277 million in compensatory damages.  However, the district court recently overturned the jury’s verdict. …
Read More Apollo Group Securities Class Action Jury Verdict Overturned

Apparently prompted by investigations of other brokers and overtures from the New York Attorney General and other regulators, three more broker-dealers have announced intentions to buy back auction rate securities (ARS) or otherwise settle ARS claims. 

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Read More Auction Rate Securities: Voluntary Buy-Backs, Settlements and Settlement Reserves

Nancy Praeger, President of the National Association of Insurance Commissioners (“NAIC”), sent a letter last month to the U.S. House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (the “Subcommittee”) and the co-sponsors of H.R. 5792, Increasing Insurance Coverage Option for Consumers Act of 2008 (the “Bill”).

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Read More NAIC Comments On Proposed Reforms Of Liability Risk Retention Act