D&O Liability

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This session’s panel began by discussing the role of brokers and the rising use of external legal consultants by insureds.  Panel members mostly agreed that the added use of these legal consultants, so long as the relationships among the all parties involved are managed correctly, are beneficial to ensure that insureds maximize their coverage. …
Read More PLUS D&O Symposium Day 2: Morning Session II

In a significant ruling with potentially wide-reaching implications, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York dismissed the Securities Act of 1933 causes of action (Sections 11, 12, and 15) against McGraw Hill and Moody’s (the “Rating Agencies”) in In re: Lehman Brother Mortgage Backed Securities Litigation. …
Read More Rating Agencies Dismissed from Section 11 Mortgage-Backed Securities Class Action

On December 30, 2009, the United States District Court for the Southern District of New York in MBIA, Inc. v. Federal Ins. Co. et al., Civ. No. 08cv4313 (S.D.N.Y. Dec. 30, 2009), held that, in certain instances, legal costs incurred by a special litigation committee in connection with a shareholder derivative litigation may be covered under a D&O policy. …
Read More D&O Update: Court Addresses Coverage for Legal Costs Incurred by a Special Litigation Committee

On December 7, 2009, the SEC charged three former executives of New Century Financial Corporation with securities fraud. See Securities and Exchange Commission v. Morrice et al., Civ. No. 09cv1426 (C.D. Cal. Dec. 7, 2009).  A copy of the SEC’s complaint is available here.    Until its bankruptcy in April 2007, New Century was one of the largest subprime lenders in the United States. 

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Read More U.S. Securities and Exchange Commission Brings Civil Action Against Former New Century Executives