D&O Liability

Subscribe to D&O Liability via RSS
The United States District Court for the Southern District of New York recently held that a U.S. court does not have subject matter jurisdiction over a lawsuit in which 90% of the proposed class is made up of foreign investors who purchased the securities at issue on foreign exchanges. 

…
Read More New York Federal Court Rejects “Global Fraud-on-the-Market” Presumption

Plaintiffs in a mutual fund class action have sought rehearing en banc after a ruling by the United States Court of Appeals for the Seventh Circuit rejected the so-called Gartenberg test, which looks to the “reasonableness” of advisory fees charged by investment advisors. …
Read More Plaintiffs Petition Seventh Circuit For Rehearing on Ruling Rejecting Gartenberg Test

The Enforcement Section of the Massachusetts Securities Division recently filed an administrative complaint against UBS Securities, LLC and UBS Financial Services, Inc. alleging conflicts of interest and use of misleading sales practices in the marketing of auction rate securities (“ARS”). 

…
Read More Massachusetts Files Securities Fraud Suit Against UBS Regarding Auction Rate Securities

The United States Court of Appeals for the Second Circuit recently dismissed a securities class action against Dynex Capital Inc. (“Dynex”) and its subsidiary, Merit Securities Corp. (“Merit”), because the plaintiff had failed to allege the requisite scienter. …
Read More Second Circuit: Dismissal of Claims Against Individual Defendants for Failure to Plead Scienter Does Not Preclude Claims Against Corporate Defendants

A Pennsylvania state court has reportedly ruled, in an unpublished opinion, that the Pennsylvania Insurance Commissioner may pursue a theory of damages against the accountant of an insolvent insurer based on a legal claim of “deepening insolvency.” …
Read More Pennsylvania State Court Permits Plaintiff to Pursue “Deepening Insolvency” Theory of Damages

AT&T Wireless Services, Inc. (“AWS”) recently filed a noteworthy reply brief in an ongoing D&O insurance coverage dispute between an AIG subsidiary and AWS over coverage for payments made by an acquirer on behalf of the acquiree’s directors and officers. 

…
Read More AT&T Wireless Appeal Seeks Reversal of Lower Court Ruling Denying D&O Coverage for $47 Million Settlement Payment

A New York state intermediate appeals court recently upheld the “plain meaning” of a so-called “insured v. insured” exclusion contained in a not-for-profit directors and officers liability policy, but narrowly construed the exclusion. 

…
Read More New York Appellate Division Affirms Narrow Interpretation of “Insured v. Insured” Exclusion in Not-for-Profit D&O Policy

One of Connecticut’s wealthiest families has recently brought an attachment suit against UBS AG, UBS Securities, LLC and UBS Financial Services, Inc. in an effort to require UBS to set aside $150 million to cover a potential reward in an ongoing FINRA arbitration concerning auction rate securities “ARS”). 

…
Read More Connecticut Attachment Suit Provides Insight Into Auction Rate Securities Claims

The United States District Court for the District of Massachusetts recently granted a motion to dismiss a “demand excused” shareholder derivative suit on the basis that the suit was mooted by the plaintiffs’ subsequent demand letter. …
Read More Massachusetts Federal Court: Subsequent Demand Moots Demand-Excused Derivative Suit