D&O Liability

Subscribe to D&O Liability via RSS

On Monday, Southern District of New York Judge Shira Scheindlin dismissed the entire suit in Gusinsky v. Barclays, without leave to amend and with prejudice. The plaintiffs, holders of American Depository Shares in Barclays Bank, had brought claims under Section 10(b) and Rule 10b-5 of the ’34 Act against Barclays, and Section 20(a) control person liability claims against individual directors of the bank for the bank’s role in the manipulation of LIBOR. …

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). …

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.…

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. …

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. …

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. …