D&O Liability

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Last month, Solicitor General Paul D. Clement filed an amicus brief with the United States Supreme Court siding with non-issuer defendants in a securities class action case. The case, entitled Stoneridge Investment Partners v. Scientific-Atlanta, No. 06-43 (U.S. Sup. Ct.), involves securities class action claims brought by shareholders against two third-party suppliers based on certain transactions between those suppliers and the issuer, Charter Communications, Inc. (“Charter”). 

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Read More Solicitor General Comes Out In Favor Of Non-Issuer Defendants In Securities Class Action Case

The Delaware Supreme Court recently held that a group of directors incurred a “Loss” under their company’s director and officer liability (D&O) policies even though the directors were indemnified by a company shareholder for the defense costs and settlements in the underlying cases. 

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Read More Delaware Supreme Court: At Home Directors Suffered A “Loss” Despite Being Indemnified By AT&T

NERA Economic Consulting recently issued a report entitled “Recent Trends in Shareholder Class Action Litigation: Filings Stay Low -Average Settlements Stay High-But Are These Trends Reversing?” (the “NERA Report”). 

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Read More NERA: Securities Class Action Filings Remain Low, Average Settlements Remain High, But These Trends May Not Last

The Wall Street Journal reports that the SEC will hold a roundtable in the spring of 2008 on issues relating to shareholder litigation reform, including the role played by insurers in indemnifying companies and individuals and the cost of paying for attorneys fees in securities class action lawsuits. 

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Read More SEC to Explore Shareholder Litigation Reform

The United States District Court for the Eastern District of Michigan granted summary judgment to an excess insurer and held that the excess policy would not be triggered until the underlying limits were exhausted by actual payment from the primary carrier. 

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Read More Court Holds that Underlying Insurer Must Pay Its Own Limits Before Excess Policy Will Attach; Insured Cannot “Fill the Gap”

U.S. property and casualty insurers face only  “minimal” exposure to risks associated with the subprime lending crisis, according to a recent report by credit rating agency Fitch Ratings. 

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Read More Rating Agency Says that Property and Casualty Insurers Face “Minimal” Subprime Lending Exposure

Although there has been a recent slowdown in D&O claims, it appears that D&O insurers may soon be hit with a new wave of claims arising out of the subprime lending crisis.  To date, twelve securities class actions have been filed against mortgage lenders. 

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Read More Subprime Lending Crisis Could Impact D&O Insurers