Last month, the Obama Administration stated its position on the reauthorization of the National Flood Insurance Program (“NFIP”).  In a letter from Department of Homeland Security Secretary Janet Napolitano to Representative Barney Frank, chairman of the House Committee on Financial Services, the Obama Administration announced that it “supports meaningful reforms to the NFIP and reauthorization of the NFIP through Fiscal Year 2014.” 

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Read More Obama Administration Announces Position on the National Flood Insurance Program

On May 7, 2009, a jury in the Northern District of Illinois reached a mixed verdict finding in plaintiffs’ favor on several counts in the Household International securities fraud class action.  The trial will now move on to the damages phase.  Prior to this verdict, only six other securities class actions that involve conduct after the passage of the PSLRA in 1995, have been tried to a verdict. …
Read More Plaintiffs Prevail in Rare Securities Class Action Verdict

As previously reported here, on August 7, 2007, a jury in a federal court in California convicted the former CEO of Brocade Communications Systems, Inc., Greg Reyes, of securities fraud in connection with the company’s failure to properly account for backdated stock options. …
Read More Brocade Executives Seek Reversal of Backdating Convictions

In early May 2009, Florida’s Chief Financial Officer, Alex Sink, asked the Florida Legislature to ensure that Florida’s Inland Protection Trust Fund (IPTF) is adequately funded. The IPTF finances environmental clean-up on sites contaminated by leaking petroleum storage tanks.  Sink warned that failing to fund the IPTF could waste progress in remediating contamination that has been made. 

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Read More Florida Environmental Claims – Florida Chief Financial Officer Alex Sink calls for funding of Inland Protection Trust Fund

The Senate Subcommittee on Consumer Protection, Product Safety and Insurance (the “Subcommittee”) will hold the first Congressional hearings on Chinese Drywall on May 21st at 10:30 a.m.  The Subcommittee intends to investigate the alleged health and product safety issues associated with Chinese Drywall. …
Read More Chinese Drywall Capitol Hill Update – Senate Subcommittee Will Conduct Hearings and House Orders Study of Available Property Insurance

Earlier this week, the United States District Court for the District of Maine issued its ruling on a motion to dismiss a class action complaint against a supermarket chain based on a massive data breach.  The decision addressed the question of whether when a third party steals a customer’s credit and debit card information from a grocer, can the customer then recover from the grocer? …
Read More Federal Court Decides That Data Breach Case Against Supermarket Chain Can Proceed, But Only As to One Plaintiff

In Dunlop Haywards (DHL) and Erinaceous Commercial Property Services Limited v Erinaceous Insurance Services Limited, Lockton Companies International Limited and MSI Corporate Capital Limited and others [2009] EWCA Civ 354, the Appellant insurance broker (Erinaceous Insurance) appealed against a decision of the High Court (see previous blog post) not to allow the Respondent excess insurers to be joined as defendants in a claim brought against the Appellant by its client insured, Dunlop. 

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Read More UK: Role of Excess Insurers in Proceedings Between Insured, Broker and Sub-Broker

One of the proposed budget savings recently proposed by President Obama is a reduction in the federal government’s role in the terrorism insurance market via a reduction in funding of Terrorism Risk Insurance Act (TRIA). 

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Read More President Obama’s Proposed Budget Calls for Reduction to TRIA

BN Americas reports that Mapfre America, Mapfre’s Latin American subsidiary, achieved net profits of US$ 39.4 million in the first quarter of 2009, an increase of 49.7% over the first quarter of 2008.  Mapfre’s worldwide net profits reportedly increased only 0.2% for the same period, demonstrating the important role of Latin America in driving Mapfre’s growth in business volume and profits. …
Read More Mapfre’s Latin American Net Profits Up 49.7% in First Quarter 2009