In Adams v. Southern Farm Bureau Life Insurance, No. 98-00020-CV-CDL-4 (July 25, 2007), the Eleventh Circuit Court of Appeals affirmed the district court’s opinion that res judicata barred appellants’ claims, owing to the settlement of an earlier consumer class action against Southern Farm Bureau Life Insurance Company (“Southern Farm”). 

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Read More Eleventh Circuit Bars Life Insurance Actions Due to Prior Class Action Settlement

On July 23, 2007, The Hartford Financial Services Group, Inc. announced settlements of recent investigations for a total of $115 million in restitution and penalties.  Specifically, the Company entered into a settlement with the New York Attorney General’s Office relating to an investigation of variable annuity market timing issues. 

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Read More The Hartford Announces Settlement of Recent Investigations

In Jurupa Valley Spectrum, LLC v. National Indem. Co., et al., 06 Civ. 4023 (S.D.N.Y., June 29, 2007), the Southern District of New York examined whether a beneficiary of surety bonds had standing to bring a cause of action for bond payments against the reinsurer of a bond issuer. 

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Read More Beneficiary of Surety Bond Lacks Standing to Assert a Direct Action Against Reinsurer

By Order dated July 16, 2007, Judge Kaplan confirmed his previous holding, in connection with KPMG tax shelter litigation, that the government’s interference with KPMG’s payment of the legal fees of its employees and former employees (under the now-superseded Thompson Memo) violated the employee’s constitutional rights. 

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Read More Further Analysis of the KPMG Dismissal

As reported here the House Committee on Financial Services held a hearing on July 17  to discuss Rep. Gene Taylor’s (D-MS) proposal, the Multiple Peril Insurance Act of 2007, which would expand the National Flood Insurance Program to include wind coverage. 

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Read More Update: Multiple Peril Insurance Act of 2007 Hits Roadblock

On July 19, 2007, Judge Breyer deferred, for the second time, his decision on the pending motion to dismiss in the Brocade stock options backdating trial.  As discussed in prior posts, see below, the government’s first criminal trial of stock-options backdating conduct began last month against ex-Brocade CEO Greg Reyes. 

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Read More The Brocade Trial: Judge Breyer Postpones Decision On Motion To Dismiss

The Chairman of the United States Securities and Exchange Commission told reporters recently that the SEC is close to making announcements regarding ongoing stock options investigations. The Chairman said that the SEC believes it has “rounded up” most of the companies that improperly backdated options. 

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Read More SEC On The Verge Of Making Announcements Regarding Stock Options Investigations

An Insurer issuing liability policies in Florida must comply with Florida’s Claims Administration Statute, Florida Statutes §627.426, or risk waiving otherwise viable “coverage defenses.” 

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Read More Florida’s Claims Administration Statute: Use it or Lose it