Coverage & Claims

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The United States government appears to have conceded that a complete dismissal of indictments against 12 former KPMG partners is the only appropriate remedy in light of an earlier ruling that federal prosecutors violated the defendants’ constitutional rights.  The action, U.S. v. Stein, No. 05 Crim. 0888 (S.D.N.Y.), stems from allegations that KPMG employees participated in a scheme to defraud the IRS by creating fraudulent tax shelters for wealthy clients. 

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Read More Federal Prosecutors Hint at Appeal of KPMG Defense Costs Decision

A Northern District of Alabama judge recently asked federal prosecutors to charge Mississippi plaintiff’s attorney Richard “Dickie” Scruggs with criminal contempt.  It is alleged that Scruggs violated a preliminary injunction issued in December 2006, which ordered him to turn over all documents secretly copied by two whistleblowers, Corgi Rigsby Moran and Kerri Rigsby. 

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Read More Scruggs In the News – Criminal Contempt Charges and Filing of a RICO Civil Action against State Farm

Princeton Insurance Company recently agreed to pay $20 million to settle a bad faith claim related to a dram shop lawsuit brought against their insured.  In the underlying lawsuit, a highway construction flagman sued Princeton’s insured, a tavern, after he was struck by a car driven by the tavern’s patron. 

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Read More Princeton to Pay $20 Million to Settle Bad Faith Claim

On June 11, Mississippi Attorney General Jim Hood filed a civil action again State Farm Fire and Casualty Co. in the Circuit Court of Hinds County, Mississippi, alleging breach of contract, bad faith breach of contract, and breach of duty of good faith and fair dealing.  The suit arises out of State Farm’s alleged failure to honor an agreement for a mass settlement of claims arising out of damage caused by Hurricane Katrina. 

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Read More Mississippi Attorney General Sues State Farm Again

On June 20, 2007, the Superior Court of New Jersey, Appellate Division reaffirmed that New Jersey Courts do not consider a Service of Suit Clause in an insurance policy to constitute an exclusive forum selection clause in favor of the insured. 

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Read More Service of Suit Clause Not an Exclusive Forum Selection Clause Under New Jersey Law

An intermediate New York State appellate court held late last year that there was a question of fact whether a component of an SEC settlement that was specifically labeled “disgorgement” actually constituted the kind of disgorgement that courts deem uninsurable as a matter of public policy. 

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Read More Does an SEC Settlement Constitute Uninsurable Disgorgement?

On June 5, 2007, a New York State Court located in Manhattan ruled that various products liability claims relating to ExxonMobil Corporation’s defective resin and lubricant products were multiple “occurrences” under liability insurance policies issued to ExxonMobil by Lloyd’s of London. 

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Read More Defective Products Claims Against ExxonMobil Deemed Multiple “Occurrences” Under New York Law