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The United States District Court for the Southern District of New York recently dismissed for a second time a federal securities class action against American Express Co. (“Amex”).  The action, entitled In re: American Express Co. Securities Litigation, involves substantial losses by Amex from investments by one of its subsidiaries in high-risk, high-yield debt instruments. 

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Read More S.D.N.Y. Dismissal In Amex Indicates How Courts Should Analyze Suits Spawned By Credit Crisis

With the House of Representatives not set to meet again until Thursday, the Senate has stepped in with a revised version of the $700 billion bailout bill, which it hopes will garner greater support in the House of Representatives.  Last Monday, the House of Representatives rejected the Emergency Economic Stabilization Act of 2008 (the “Act”) by a vote of 228-205. 

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Read More BREAKING NEWS: Senate Proposes Revised Bailout Bill, Will Vote Tonight

The United States District Court for the Northern District of California recently held that a securities fraud claim related back to a notice of circumstances given by the insured to its primary and excess D&O insurers concerning an earlier patent infringement case. 

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Read More Securities Claim Relates Back to Notice of Circumstances Regarding Patent Infringement Suit

In early 2007, a purported class of investors in NovaStar Financial Corporation, a residential mortgage lender that made a percentage of its loans to subprime borrowers, sued NovaStar and certain of its directors and officers in the United States District Court for the Western District of Missouri. …
Read More NovaStar Plaintiffs Appeal Subprime Dismissal

As we previously reported here, Rep. Barney Frank’s (D-MA) bill, H.R.6965, which would temporarily extend the NFIP for an additional seven months, was passed by the House of Representatives and the Senate.  The National Flood Insurance Program (“NFIP”) was set to expire at the end of September. 

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Read More UPDATE: Congress Passes NFIP Short-Term Extension

As an update to our previous post, by a vote of 228-205 the House of Representatives rejected the $700 billion bailout bill, formally known as the Emergency Economic Stabilization Act of 2008, which was designed to aid the struggling U.S. economy. 

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Read More UPDATE: House Fails to Pass Bailout Bill

EAPD lawyer Machua Millett recently participated in the American Conference Institute’s ReAct Brazil International Forum on Positioning for Success in the Brazilian Reinsurance Market. …
Read More Industry Participants and Regulators Discuss Development of the Brazilian Reinsurance Market (Part II)

The United States Court of Appeals for the Tenth Circuit recently held that general liability insurance policies that provide coverage for injuries caused by acts or omission in providing “professional services” do not trigger a duty to defend or indemnify claims for false billing. …
Read More False Billing Claims Are Not Covered “Professional Services” Under General Liability Policies

While Congressional leaders continue to negotiate the terms of a bailout plan to relieve mortgage lenders and investment banks of their distressed mortgage debt, a shareholder derivative action has been filed against PFBB Bancorp (“PFBB”) and several of its directors and officers in the Delaware Chancery Court to enjoin a proposed merger between PFBB and FBOP Bancorp (“FBOP”). A copy of the complaint, filed on September 22, 2008, can be found by clicking here. 

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Read More Proposed $700 Billion Bailout Plan Sparks Shareholder Derivative Action

As we previously reported here, on September 16, 2008 the Federal Reserve Bank of New York (“Federal Reserve”) agreed to issue American International Group, Inc. (“AIG”) a two year, $85 Billion secured revolving credit facility.  On September 23, 2008 AIG announced it signed a definitive agreement with the Federal Reserve with respect to such credit facility. 

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Read More UPDATE: AIG Signs Definitive Agreement with Federal Reserve