D&O Liability

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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

On December 29, 2009, Broadcom announced that it had agreed in principle to pay $160.5 million to settle a securities class action pending in United States District Court for the Central District of California  against the company and certain of its current and former officers and directors. 

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Read More Broadcom Settles Options Backdating Securities Class Action

In 2002, Tyco became embroiled in a well-publicized scandal arising out of alleged corporate looting by the company’s top management.  In 2005, Tyco’s former CEO, Dennis Kozlowski, and its former CFO, Mark H. Swartz, were convicted of grand larceny and securities fraud and are currently serving prison sentences.  Many civil litigations arose out of the Tyco scandal, including a securities class action that settled for nearly $3 billion. …
Read More Former Tyco Director Settles With Pension Fund in Opt-Out Action

Most public companies will need to provide new disclosures about corporate governance, director qualifications and compensation matters in proxy statements for their 2010 annual meetings. …
Read More Client Advisory – SEC Requires Additional Corporate Governance and Compensation Disclosure for 2010 Annual Meetings

On November 30, 2009, the United States Supreme Court granted certiorari to hear the appeal of a Second Circuit Court of Appeals decision affirming the dismissal of an “F-Cubed” securities class action — i.e., a securities class action brought by foreign investors who purchased shares in a foreign company on a foreign stock exchange — on subject matter jurisdiction grounds. 

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Read More The U.S. Supreme Court Grants Certiorari in F-Cubed Case

Last week, the Associated Press announced that the number of bankruptcy filings in federal courts this year have increased by more than one-third.     Based on numbers from the Administrative Office of the U.S. Courts, the Associated Press reports that about 1.4 million bankruptcy cases were filed between October 1, 2008 and September 30, 2009.…

Read More Federal Court Bankruptcy Filings Are Up By More Than One-Third

On December 1, 2009, the New York Appellate Division, First Department, unanimously affirmed Justice Marcy S. Friedman’s March 10, 2009 Decision and Order (entered March 13, 2009, Supreme Court, New York County), dismissing Millennium’s complaint as against defendant Select Insurance Company. 

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Read More UPDATED: NY Appellate Court Affirms Motion Court’s Dismissal of Complaint Seeking Defense Costs Under Directors and Officers Errors and Omission Policy for Investigations That Resulted in Disgorgement of Improperly Acquired Funds

Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review – December 2009, which contains eight articles about various topics in the insurance and reinsurance industry. 

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Read More Insurance and Reinsurance Review – December 2009