Last week, an Indiana charity that “makes wishes come true” for children with life threatening illnesses filed arbitration claims over subprime related losses it allegedly suffered in a bond fund managed by Morgan Keegan & Co. The Indiana Children’s Wish Fund claims that it lost $48,000, or 22% of its $220,000 investment, in the Regions Morgan Keegan Select Intermediate Bond Fund.
Read More Indiana Charity Files Arbitration Claims Against Bond Fund Advisor Over Subprime Losses
D&O Liability
Second Brocade Executive Convicted in Backdating Prosecution
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On December 5, 2007, following a 5 1/2 day trial in the U.S. District Court for the Northern District of California, a jury convicted Brocade’s former head of human resources, Stephanie Jensen, of falsifying corporate records and conspiracy.
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Ninth Circuit Overturns Rare Securities Class Action Verdict
By Troutman Pepper Locke on
Posted in D&O Liability, United States
The Ninth Circuit Court of Appeals recently reversed the 2005 defense verdict in Miller v. Thane Int’l, Inc., one of the only instances to date in which a securities class action had actually been tried to a verdict. …
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Brocade Stock Options Backdating Criminal Trial: Episode II
By Troutman Pepper Locke on
Posted in D&O Liability, United States
In the wake of the successful prosecution of ex-Brocade CEO Greg Reyes, government prosecutors are trying their luck a second time — this time with Brocade’s former vice president of human resources, Stephanie Jensen.
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Read More Brocade Stock Options Backdating Criminal Trial: Episode II
SEC Files Amicus Brief in Bear Stearns Insurance Coverage Litigation
By Troutman Pepper Locke on
The Securities and Exchange Commission recently filed an amicus brief in the Vigilant Ins. Co. et al. v. The Bear Stearns Cos., Inc. insurance coverage litigation. On June 19, 2007, an intermediate New York State appellate court held that a question of fact existed as to whether a component of an SEC settlement that was specifically labeled as disgorgement actually constituted the kind of disgorgement that many courts have deemed uninsurable as a matter of public policy.
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U.S. House of Representatives Passes Subprime Legislation Targeting Wall Street Banks
As the number of home foreclosures continues to rise, the United States House of Representatives recently passed legislation directed at a range of players involved in the subprime crisis.
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Options Backdating Class Action Against Apple D&Os Dismissed
By Troutman Pepper Locke on
Posted in D&O Liability, United States
On November 14, 2007, federal court judge Jeremy Fogel, sitting in the district court of the Northern District of California, dismissed a purported class action brought by Apple shareholders against Steve Jobs and other Apple D&Os.
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Read More Options Backdating Class Action Against Apple D&Os Dismissed
British Insurer Seeks to Confirm Arbitration Award Against Former Tyco CEO
By Troutman Pepper Locke on
Recently, Corporate Officers & Directors of Assurance Ltd. (“CODA”), a U.K. insurer that issued a directors and officers policy to Tyco International Ltd., petitioned a New York state court to confirm an arbitration award directing Tyco’s former CEO, L. Dennis Kozlowski, to pay CODA about $2 million.
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Shareholders File Class Action and Derivative Suits Against Merrill Lynch Over $8.4 Billion Subprime Write-Down
A shareholder class action suit was filed against Merrill Lynch & Co. on October 30, 2007 following an announcement by Merrill Lynch that it would have to write-down $8.4 billion in connection with mortgage-related investments. The charge for that write-down is being taken in the third-quarter of 2007.
D&O Insurer not Liable for Bad Faith Damages
By Troutman Pepper Locke on
Posted in D&O Liability, United States
In a recent decision from a federal court in Georgia, Executive Risk Indem., Inc. v. AFC Enterprises, Inc., an insurer sought a declaratory judgment that it properly rescinded a D & O policy based on the insured’s material misrepresentations in the application of insurance.