D&O Liability

Subscribe to D&O Liability via RSS

On June 11, 2009, Ashland Inc., the maker of Valvoline Motor Oil, filed a complaint against Morgan Stanley in the U.S. District Court for the Southern District of New York, based upon Morgan Stanley’s alleged sale of Auction Rate Securities (“ARS”) to Ashland. …
Read More ARS Suit by Valvoline Maker Alleges Morgan Stanley Fraudulently Misrepresented Securities

On June 4, 2009, the SEC filed a complaint against several former Countrywide executives alleging securities fraud. In its complaint, the SEC alleges that former Countrywide CEO Angelo Mozilo, former COO and president David Sambol and former CFO Eric Sieracki violated Section 10(b) of the Securities Exchange Act by deliberately misleading investors about the significant credit risks being taken by Countrywide in its efforts to maintain and increase the company’s market share. 

…
Read More SEC Charges Former Countrywide Executives with Securities Fraud

More than $9 million of the $65.8 settlement fund in the Bisys Group securities class action is missing.  At a hearing in late April before Southern District of New York Judge Jed Rakoff,  lead plaintiff’s counsel, Gene Cauley, advised “the funds are presently unavailable to be delivered,” and when asked why, counsel responded by saying that “if I go into anymore detail, I think I might violate a privilege against self-incrimination.” 

…
Read More Lead Plaintiff’s Counsel Pleads Guilty Over Missing Securities Class Action Settlement Funds

On May 26, 2009, the U.S. Supreme Court granted Merck’s petition for a writ of certiorari in the securities class action regarding Merck’s Vioxx disclosures.  The issue that the Supreme Court will address is what is required to establish “inquiry notice” sufficient to trigger the running of the two year statute of limitations for private securities lawsuits brought under Section 10(b) of the Securities Exchange Act of 1934. …
Read More U.S. Supreme Court to Decide “Inquiry Notice” Standard

Advisen recently issued a securities filing report for Q1 2009 indicating that the upward trend in securities litigation filings from 2008 is continuing.  According to the report, there were a total of 169 securities cases filed in Q1 2009, up from both the prior quarter (Q4 2008 saw 125 filings) and Q1 2008 (134 filings). 

…
Read More Advisen Report Indicates Securities Suits Still On the Rise

On May 7, 2009, a jury in the Northern District of Illinois reached a mixed verdict finding in plaintiffs’ favor on several counts in the Household International securities fraud class action.  The trial will now move on to the damages phase.  Prior to this verdict, only six other securities class actions that involve conduct after the passage of the PSLRA in 1995, have been tried to a verdict. …
Read More Plaintiffs Prevail in Rare Securities Class Action Verdict

Edwards Angell Palmer & Dodge is delighted to announce that it will again this year host a half-day seminar which will be repeated in Bermuda, New York and Boston. …
Read More Edwards Angell Palmer & Dodge Half-day CLE Insurance & Reinsurance Seminars – June 2009

The United States Supreme Court will review a decision by the United States Court of Appeals for the Seventh Circuit rejecting the so-called Gartenberg test, which looks to the “reasonableness” of advisory fees charged by investment advisors. …
Read More United States Supreme Court to Consider Challenge To Gartenberg Test Governing Allegedly Excessive Advisory Fees

The Superior Court of Delaware recently held that a D&O insurer failed to timely respond to it insured’s reimbursement requests and must therefore provide reimbursement for prior legal defense costs and advance future defense costs within sixty days of receipt of invoices. …
Read More Delaware State Court: D&O Insurer Waived its Right to Hearing on Reasonableness of Insured’s Reimbursement Requests