Investors of iShares Trust, (“iShares”), a investment management company, filed a federal class-action lawsuit against the company and certain of its directors and officers alleging, among other things, violations of Section 80a-13 of the Investment Company Act of 1940 (the “ICA”) as a result of iShare’s investment of 11 percent of a corporate bond fund, approximately $400 million of the fund’s total net assets, in Lehman Brothers (“Lehman”) subordinated bonds on the eve of Lehman’s demise. 

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Read More Shareholders File Suit Following Company’s Decision to Invest Eleven Percent of Assets in Lehman Brothers – On Day Before Lehman’s Collapse

As previously discussed in this space, a new draft insurance law (see here, here, here and here) and nationalization of private property (see here) have caused significant concern among insurers and reinsurers about doing business in Venezuela.  These concerns, however, continue to be at least somewhat counterbalanced by impressive growth in the country’s insurance market. 

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Read More Despite Concerns About New Insurance Law and Expropriation Risk, Venezuelan Insurance Market Grows 38%

On June 26, 2009, Senate Bill 894, An Act Requiring Disclosure of Automobile Liability Insurance Policy Limits Prior to the Filing of a Claim (“SB 894”), was sent to the Connecticut Secretary of State for approval or veto by the Governor. 

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Read More Proposed Legislation in Connecticut Will Require Insurers to Disclose Automobile Liability Insurance Policy Limits Prior to a Claim Being Filed

On Monday, July 6, 2009, Acting New York State Insurance Department (“NYSID”) Superintendent Kermitt Brooks announced that the NYSID entered into an Exchange of Letters (“EoL”) with the Financial Services Agency of Japan (“FSA”), Japan’s insurance regulator. 

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Read More New York Insurance Department Announces Cooperation Agreement with Japan

Late last month, the New Jersey legislature passed A2238/S1651 (the “NJ Act”), which requires group health insurers to provide coverage for the diagnosis and treatment of autism spectrum disorders.  Specifically, policies must provide coverage for treatments that are deemed medically necessary by the autistic person’s physician including behavioral therapy, physical therapy, speech therapy, and occupational therapy. 

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Read More New Jersey Passes Autism Coverage Legislation; Massachusetts Considering Same

The Financial Services Authority has published a consultation paper (CP09/18) in connection with the distribution of retail investments (including life products but excluding pure protection products: see below) – known as its retail distribution review (RDR). 

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Read More UK: Financial Services Authority to Abolish Commission Payment Structures

On June 16, 2009, U.S. District Court Judge Stanwood R. Duval Jr. granted a request by insurers to strike class allegations asserted in In re Katrina Canal Breaches Consolidated Litigation (click here for a copy of the Order).  Judge Duval reasoned that the claims required individualized fact-specific inquiries which made them inappropriate for class certification. 

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Read More Katrina: Insurance Class Allegations Stricken in In re Katrina Canal Breaches Consolidated Litigation

In a recent decision of the United States District Court for the Southern District of New York, Cooke & Partners, Ltd. v. Certain Underwriters at Lloyd’s, London, No. 08 Civ. 3435 (RJH) (S.D.N.Y. Mar. 26, 2009), the Court compelled the assignee of a liquidator’s claims to arbitrate its disputes with the reinsurers of the liquidated company. 

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Read More Southern District of New York Compels Arbitration of Assignee of Liquidator’s Claims Under the New York Convention

We have previously reported on the UK Financial Services Authority’s (FSA) temporary ban on the short selling of stocks in the UK financial sector (which has now expired) and the ongoing disclosure requirements in relation to new and existing short positions. 

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Read More UK: FSA Extends Short Selling Disclosure Requirements

In Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38, Persimmon appealed three issues relating to the construction of a payment clause in a contract for the redevelopment of Chartbrook’s land by Persimmon. Persimmon contended that (1) its construction of the clause was correct (2) the rule on excluding pre-contractual negotiations as an aid to construction of a contract should be reversed (3) rectification of a contract should be based on an objective, rather than subjective, assessment of the parties’ common intention. 

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Read More UK: Construction of a Contract – House of Lords Delivers Significant Decision