In its December 4, 2007 decision in Smith v. Allstate Indemnity Co., the Fifth Circuit Court of Appeals held that Allstate did not act in bad faith when it denied coverage for damage to Norris Edwards Smith’s home caused by storm surge during Hurricane Katrina.
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United States
$280 Million Securities Class Action Verdict Against Apollo Group
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On January 16, 2008, at the end of a two-month trial, a federal jury in the United States District Court for the District of Arizona found that Apollo Group, Inc. (“Apollo”) and two former Apollo executives violated federal securities laws by fraudulently misleading its investors about its recruitment policies. …
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Breaking News: Brocade Stock Options Backdating Criminal Trial: Reyes’ Sentenced to 21 Months in Prison
By Troutman Pepper Locke on
Posted in D&O Liability, United States
Today, former Brocade CEO Greg Reyes was sentenced to 21 months in prison and ordered to pay a $15 million fine in the first criminal trial to arise out of the stock options backdating scandal. …
Read More Breaking News: Brocade Stock Options Backdating Criminal Trial: Reyes’ Sentenced to 21 Months in Prison
Florida No-Fault Statute Returns after Short Hiatus
By Troutman Pepper Locke on
After a three-month break, effective January 1, 2008, Florida returned to a no-fault system and again mandated that Florida drivers carry personal injury protection (“PIP”) coverage. PIP coverage pays the first $10,000 of medical costs for injuries related to automobile accidents, regardless of who was at fault.
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Connecticut Supreme Court Rules that “Common Cause” Provision of Reinsurance Treaty Is Ambiguous With Respect to the Aggregation of Claims
In Hartford Accident and Indemnity Co, et al. v. Ace American Reinsurance Co., et al., No. 17625 (Sup. Ct. Conn. Dec. 25, 2007), the Connecticut Supreme Court found a “common cause” provision in a reinsurance treaty to be ambiguous for purposes of whether multiple asbestos claims could be aggregated as a single occurrence, reversing the lower court’s decision granting summary judgment to the defendant reinsurers. …
Read More Connecticut Supreme Court Rules that “Common Cause” Provision of Reinsurance Treaty Is Ambiguous With Respect to the Aggregation of Claims
Property Insurers Subpoenaed by Florida Legislature Over Rates
By Troutman Pepper Locke on
Posted in Florida Developments, United States
As we reported here, Florida is dealing with several issues concerning its approved rates for property insurance. Last Thursday, several property insurers were subpoenaed by Florida lawmakers to provide testimony before Florida’s Senate Banking and Finance Committee as to why homeowner’s insurance rates in that state have not declined a year after the state’s hurricane insurance pool was doubled. …
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California Wildfire Decisions May Provide a Guide for Future Disputes
In the wake of the wildfires that devastated Southern California in October of last year, more than 22,000 insurance claims were filed, according to the Insurance Information Network of California. While the bulk of those claims may be for additional living expenses due to the mass evacuation of San Diego County, at least 1,500 homes were destroyed by the fires.
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Massachusetts Attorney General Files Complaint Against Insurer Alleging Bid Rigging
By Troutman Pepper Locke on
In a press release dated January 4, 2008, Massachusetts Attorney General Martha Coakley’s Office reported that it filed a complaint in Suffolk Superior Court against Ohio-based insurer Great American Insurance Group (“Great American”).
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Breaking News: Supreme Court Rules Against Investors to Limit Shareholder Suits
By Troutman Pepper Locke on
Posted in D&O Liability, United States
In a highly anticipated decision issued this morning, the U.S. Supreme Court upheld the dismissal of a shareholder lawsuit where the plaintiffs failed to establish reliance on any statements made by the defendants. …
Read More Breaking News: Supreme Court Rules Against Investors to Limit Shareholder Suits
Governor Crist Assembles Trial Team To Review Insurers’ Compliance With Rate Reform
By Troutman Pepper Locke on
As one of his first actions upon taking office in January 2007, Florida Governor Charlie Crist asked the state legislature to increase the state’s hurricane catastrophe fund. Crist’s initiative was designed to lower insurers’ costs, and insurers, which bought reinsurance from the state, were supposed to pass their savings on to policyholders.
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Read More Governor Crist Assembles Trial Team To Review Insurers’ Compliance With Rate Reform