Topic: D&O Liability

Court Holds That Professional Services Exclusion In D&O Policy Applies To Broker-Dealer’s Distribution of REITs

A federal court, applying New York law, recently held that a “professional services” exclusion in a D&O policy applied to lawsuits against a broker-dealer arising out of its underwriting and marketing of shares issued by a set of real estate investment trusts (or “REITs”). See David Lerner Assocs. v. Philadelphia Indem. Ins. Co., No. 2:12-cv-01609-JFB-AKT (E.D.N.Y. Mar. 29, 2013). 

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Freddie Mac Suit May Change LIBOR Litigation Landscape

In a complaint filed last week in the U.S. District Court for the Eastern District of Virginia, home mortgage purchaser Freddie Mac has injected itself into the already sprawling network of cases alleging wrongdoings in connection with the USD LIBOR manipulation scandal. Freddie Mac has named more than a dozen major banks that sat on the USD LIBOR panel as defendants, and, in a new twist, is the first plaintiff to also sue the British Bankers’ Association and several related entities.

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Indictment of Former CalPERS Head Puts Spotlight Back on Placement Agents and Private Equity Firms

Earlier this week Federico Buenrostro, who headed the influential California Public Employees’ Retirement System from 2002 through 2008, was indicted by a federal grand jury on fraud charges stemming from his involvement in falsifying documents as part of a “pay-to-play” scheme at the pension fund. The indictment is the result of a four year investigation by the SEC, the FBI, and the U.S. Postal Inspection Service. 

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Reflections on the 2013 PLUS D&O Symposium – Day One

The first day of the 2013 PLUS D&O Symposium featured panel discussions on regulatory and securities litigation trends, D&O claims in the context of private companies and non-profits, coverage “wish lists,” and current issues in underwriting for financial institutions. There was also a luncheon keynote address on the general convergence of reinsurance and specialty insurance. 

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PLUS D&O Comment: Private Companies, Tortious Interference, and Contractual Liability Exclusions

On the first morning of the PLUS D&O Symposium, a panel discussed the emerging field of D&O insurance issued to private and non-profit companies, and whether this market was a “Nest Egg or Power Keg.” The panelists commented that insurers of private companies can be exposed to broad lawsuits involving unexpected liabilities that were not intended to be within the scope of D&O coverage. 

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Securities and Exchange Commission Files Fraud Suit Against U.S. Public Company that was Formed as a Result of a Reverse Merger with Chinese Company

On November 30, 2012, the Securities Exchange Commission announced that it has filed a complaint in the Southern District of New York against China North East Petroleum Holdings Limited (“CNEP”) and a number of its current and former directors and officers (Securities and Exchange Commission v. China North East Petroleum Holdings Limited, et al., Civil Action No. 12-CV-8696 (S.D.N.Y.)).  CNEP is a Nevada corporation with principal executive offices in New York and oil drilling operations in China. 

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