D&O Liability

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In an insurance coverage action filed recently in the U.S. District Court for the Eastern District of North Carolina, an insured seeks an order directing its D&O insurer to pay defense costs and indemnify it, if it is found liable, in an action brought by a former director. 

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Read More North Carolina Federal Court: Insured Asks Federal Court to Rule on Whether D&O Insurer Should Cover Its Defense Costs and Indemnification in Suit by Former Director

The Pennsylvania Superior Court recently affirmed a lower court’s summary judgment ruling in favor of an insurer, holding that the limit of liability in a directors and officers liability policy was limited to $10 million in the aggregate, as opposed to per claim, even though certain policy documents did not include the word “aggregate” when referring to the limit of liability. 

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Read More Pennsylvania Superior Court Affirms Decision in Favor of Insurer Regarding Whether D&O Policy’s Limit of Liability Applied in the Aggregate or Per Claim

Recently, in Lyondell Chem. Co. v. Ryan, the Delaware Supreme Court reaffirmed the protections afforded directors in their efforts to obtain the best price in a corporate sale and provided important clarification of directors’ duties in navigating change of control transactions. 

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Read More Delaware Supreme Court Reaffirms Exculpation Protections in Sale of Corporate Control and Clarifies Revlon Duties

An Illinois federal court recently held that an insured’s bad faith claim fell within the scope of an arbitration provision contained in a D&O Policy and therefore granted the insurer’s motion to compel arbitration. …
Read More Federal Court Rules that Bad Faith Claim Falls Within Scope of Arbitration Clause in D&O Policy

A New York State appellate court recently held that a CGL insurer was entitled to contribution from the insured’s D&O insurer for its equitable share of the defense costs incurred by the CGL insurer in defending two underlying actions against the insured that included causes of action that were not covered under the CGL policy, but were covered by the D&O policy. …
Read More New York State Appellate Court Addresses the Potential Overlap in CGL and D&O Coverage

A federal judge has sentenced two former executives of collapsed health care financing company National Century Financial Enterprises (“NCFE”), to decades in prison for their roles in a $2.8 billion fraud scheme. 

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Read More NCFE Executives Sentenced to Decades in Prison for Role in Company’s Collapse and $2.8 Billion Fraud

In Wagner v. United National Insurance Co. et al. (click here to read the decision), the Supreme Court of Nebraska affirmed a district ruling that a regulatory exclusion in a D&O policy excluded coverage for the underlying action brought by the Director of Insurance of the State of Nebraska in his capacity as the bankruptcy liquidator of the insured, an insolvent insurance company. 

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Read More Regulatory Exclusion Bars Coverage for Lawsuit Brought by the Director of Insurance

Shareholders of Perrigo Company recently filed suit in the United States District Court for the Southern District of New York against Perrigo, a pharmaceutical manufacturer and distributor and seven of its directors and officers, alleging violations of Section 10(b) and Rule 10b-5 of the 1934 Securities Exchange Act.  See Warner v. Perrigo Co., No. 09-CV-2255 (March 11, 2009). 

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Read More Shareholders File Suit in New York Federal Court Against Auction Rate Securities Buyer