The United States District Court for Oklahoma recently ruled that homeowners’ liability policies (primary and excess) did not cover a homebuyer’s lawsuit against the insured sellers for misrepresenting the condition of the home’s fireplaces.
Read More Oklahoma Federal Court Holds Claim For Misrepresentations in Home Sale Not Covered By Homeowners’ Liability Policy
Have You Taken Steps to Comply with GINA Yet?
By Troutman Pepper Locke on
On November 21, 2009, the Genetic Information Nondiscrimination Act (GINA), which prohibits genetic information discrimination in health coverage and employment, took effect.
U.S. Securities and Exchange Commission Brings Civil Action Against Former New Century Executives
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On December 7, 2009, the SEC charged three former executives of New Century Financial Corporation with securities fraud. See Securities and Exchange Commission v. Morrice et al., Civ. No. 09cv1426 (C.D. Cal. Dec. 7, 2009). A copy of the SEC’s complaint is available here. Until its bankruptcy in April 2007, New Century was one of the largest subprime lenders in the United States.
European Insurer Issues Press Release Addressing the Impact of Climate Change on Claims
By Troutman Pepper Locke on
Posted in Climate Change, United States
German insurer Munich Re issued a press release stating that while 2009 saw fewer natural catastrophe losses than 2008, the number of natural hazard events was above average. Munich Re reports that economic losses totaled $50 billion and uninsured losses totaled $22 billion in 2009, as compared to $200 billion in economic losses and $50 billion in uninsured losses in 2008.
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Read More European Insurer Issues Press Release Addressing the Impact of Climate Change on Claims
Broadcom Settles Options Backdating Securities Class Action
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On December 29, 2009, Broadcom announced that it had agreed in principle to pay $160.5 million to settle a securities class action pending in United States District Court for the Central District of California against the company and certain of its current and former officers and directors.
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Read More Broadcom Settles Options Backdating Securities Class Action
Former Tyco Director Settles With Pension Fund in Opt-Out Action
By Troutman Pepper Locke on
Posted in D&O Liability, United States
In 2002, Tyco became embroiled in a well-publicized scandal arising out of alleged corporate looting by the company’s top management. In 2005, Tyco’s former CEO, Dennis Kozlowski, and its former CFO, Mark H. Swartz, were convicted of grand larceny and securities fraud and are currently serving prison sentences. Many civil litigations arose out of the Tyco scandal, including a securities class action that settled for nearly $3 billion. …
Read More Former Tyco Director Settles With Pension Fund in Opt-Out Action
In Private Letter Ruling, IRS Says Captive Reinsurance of Fronted Pools is “Insurance” for Tax Purposes
By Troutman Pepper Locke on
The Internal Revenue Service (IRS) issued a private letter ruling on December 11, 2009, resolving a taxpayer’s question as to whether its business as a captive reinsurer is “insurance” for tax purposes. The IRS provides private letter rulings upon individual taxpayer request in which the IRS interprets and applies tax law to a taxpayer’s specific set of facts.
NERA’s 2009 Year-End Securities Class Action Trends Update
By Troutman Pepper Locke on
Posted in D&O Liability, United States
NERA Economic Consulting has issued its report titled: “Recent Trends in Securities Class Action Litigation: 2009 Year-End Update” (the “NERA Year-End Update”). The NERA Year-End Update provides statistics based on information through November 30, 2009.
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Read More NERA’s 2009 Year-End Securities Class Action Trends Update
Chinese Drywall – Judicial Panel on Multi-District Litigation Rules that Matter Involving North American Manufactured Drywall Should Not Be Transferred to Chinese Drywall MDL
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
On December 2, 2009 the Judicial Panel on Multi-District Litigation (“JPML”) ruled that an action alleging damage from North American manufactured drywall should not be transferred to the federal Chinese Drywall Multi-District Litigation (“MDL”) pending in the Eastern District of Louisiana (In Re: Chinese-Manufactured Drywall Product Liability Litigation, MDL No. 2047).
Chinese Drywall – Judicial Panel on Multi-District Litigation Rules that Insurance Coverage Matter Should Not Be Transferred to Chinese Drywall MDL Proceedings
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
On December 2, 2009 the Judicial Panel on Multi-District Litigation (“JPML”) rejected efforts to transfer an insurance coverage action to the federal Chinese Drywall Multi-District Litigation (“MDL”) pending in the Eastern District of Louisiana (In Re: Chinese-Manufactured Drywall Product Liability Litigation, MDL No. 2047).