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

On July 17, 2007, New York Attorney General (“NYAG”) Andrew M. Cuomo filed suit against the ExxonMobil Corporation and ExxonMobil Refining and Supply Company “to force the cleanup of a 17-million-gallon oil spill in Greenpoint, Brooklyn, and to restore Newtown Creek, the contaminated waterway separating Queens from Brooklyn.”  

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Read More NYAG Sues ExxonMobil over Alleged 17-million-gallon Oil Spill in New York City

A federal district court has dismissed a complaint containing seven claims, including three RICO claims, against Coventry First LLC and several related corporate entities and principals. 

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Read More Federal Court Dismisses RICO Complaint Against Coventry

As anticipated, the U.S. Attorney for the Southern District of New York filed official notice on Monday, July 17 that it intends to appeal U.S. District Judge Lewis A. Kaplan’s recent dismissal of criminal tax fraud charges against 13 out of 16 former KPMG employees. 

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Read More U.S. Attorney To Appeal KPMG Dismissals

Rep. Gene Taylor (D-MS) has introduced H.R. 920, entitled the “Multiple Peril Insurance Act of 2007,” to the United States House of Representatives in response to the denial of claims from Hurricane Katrina due to wind loss. 

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Read More Congress Considering Reforms to National Flood Insurance Program

The Travelers Companies, Inc. has announced a settlement with ACandS Inc. to resolve all current and future asbestos-related coverage claims.  ACandS, an insulation contractor, has been undergoing Chapter 11 reorganization since 2002, and its bankruptcy counsel has described the Travelers insurance coverage as “the most important asset of ACandS’s bankruptcy estate.” 

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Read More Travelers Enters Settlement with ACandS, Ending “Potentially Unlimited” Exposure; Plan Includes Reinsurance Allocation