D&O Liability

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In this space approximately six weeks ago (click here), we reported on the failure of over $100 million in auctions concerning auction rate securities and cautioned that, “[r]egardless of the cause, the continued blossoming of the credit crisis should be of significant interest to insurers and reinsurers because failures in other areas of the debt markets could potentially lead to D&O and E&O claims similar to those seen in connection with the subprime mortgage crisis.” 

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Read More Auction Rate Securities Issues Proliferate

An Illinois federal court recently granted an insurer’s motion for judgment on the pleadings based on an insured v. insured exclusion, which the court found was triggered by a claim brought “on behalf of” the insured by the insured’s receiver. 

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Read More Illinois Federal Court: Insured v. Insured Exclusion Precludes Coverage For Action Brought By Receiver

The Canadian federal government has charged a panel of experts with investigating possibilities for significant securities regulation reform.  Notably, the panel has been asked to “develop a model common securities act,” according to a press release issued by the Honourable Jim Flaherty, the Canadian Minister of Finance. 

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Read More Canada Considers Nationwide Securities Regulation Reform

On March 18, 2008, Stephanie Jensen, Brocade’s former Human Resources Director, was sentenced to four months in prison and three months in a halfway house and ordered to pay a $1.25 million fine based upon her December 2007 conviction on charges of conspiracy and falsifying corporate records related to stock option backdating. 

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Read More Brocade: Former Human Resources Director Sentenced On Backdating-Related Conviction

In a recent decision (click here), New York’s highest court weighed in on a long-standing debate over an insurance policy’s requirement that insureds obtain their insurers’ consent before settling a claim made against an insured. …
Read More Insured’s Breach of Consent Provision Precludes Coverage for Settlement

The first shareholder action to surface in the wake of the momentous sale of Bear Sterns & Co. Inc. to J.P. Morgan Chase & Co. was filed yesterday in the U.S. District Court for the Southern District of New York.  The complaint names as defendants Bear Stearns and certain of its officers and directors, and charges them with violations of the Securities Exchange Act of 1934. 

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Read More Bear Stearns Sale Sparks First Shareholder Action

Edwards Angell Palmer & Dodge Hosts Seminar on Directors’ Duties and Sub-prime Issues
On 6 March 2008 Edwards Angell Palmer & Dodge hosted a seminar in London for over 90 representatives from a broad cross section of the insurance and reinsurance industry. Helen Clark and Antony Woodhouse, partners in the London office, spoke about codified duties and shareholder actions in the UK following the coming into force of the Companies Act 2006, which introduces a new statutory statement of directors’ duties and reforms to shareholder derivative actions. 

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Read More Edwards Angell Palmer & Dodge Hosts Seminar on Directors’ Duties and Sub-prime Issues

On February 13, 2008, United States District Court Judge Saundra Brown Armstrong appointed Gwyn Jones, a U.K. citizen that resides in Cyprus, as the lead plaintiff in a securities class action brought against BigBand Networks, Inc., its directors and officers, and other defendants. …
Read More Foreign Plaintiff Named Lead Plaintiff in BigBand Securities Class Action