D&O Liability

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The third panel on day one of the PLUS D&O Symposium addressed developments arising from the financial crisis and the implications of these developments for D&O insurers, and assessed the current and potential future impact on the underwriting of financial institutions.  One panelist believes that the industry has weathered the financial crisis fairly well. …
Read More PLUS D&O Symposium 2012 – Day 1 Third Panel: Financial Institutions Underwriting: Is It Safe to Come Out Now?

In the second panel of the PLUS D&O Symposium, the panelists discussed the recent rise in litigation following mergers and acquisitions.  One panel member recalled that around 84% of M&A deals result in litigation, with an average of five lawsuits filed in each case. …
Read More PLUS D&O Symposium 2012 — Day 1 Second Panel: What’s New in M&A Litigation and How Did We Get Here?

The first panel of the 2012 PLUS D&O Symposium discussed some of the latest trends in securities litigation and opined on potential future developments which may impact the D&O industry. …
Read More PLUS D&O Symposium 2012 — Day 1 First Panel: Latest Trends in Securities Litigation and Dodd-Frank

The Second Circuit has declared that a bond insurer’s D&O program was obligated to pay costs incurred by an independent consultant who was hired during the course of settlement negotiations, despite the carrier’s claimed lack of an effective association in the settlement.  MBIA, Inc. v. Federal Insurance Company and ACE American Insurance Company, No. 10-355 (2d Cir. July 1, 2011). 
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Read More Second Circuit Finds That D&O Policies Must Cover Costs Incurred By Independent Consultant Hired During Settlement Discussions

Federal Investigation

Federal lawmakers recently called on several agencies, including the Securities and Exchange Commission (SEC), the Energy Information Administration (EIA) and the Government Accountability Office (GAO), to investigate whether the natural gas industry has provided an accurate picture to investors of the long-term profitability of their wells and the amount of gas these wells can produce. …
Read More Hydrofracking Under Fire: Federal and State Lawmakers Turn Up Heat on Natural Gas Industry and NY Attorney General Issues Subpoenas to Five Companies

In Janus Capital Group, Inc. and Janus Capital Management LLC v. First Derivative Traders, decided June 13, 2011, the Supreme Court held that Janus Capital Management LLC (JCM), a subsidiary of Janus Capital Group, Inc. (JCG) and investment advisor for JCG on a group of its mutual funds, cannot be held primarily liable in a private action by JCG shareholders for alleged false statements in a prospectus under Section 10(b) of the Securities Exchange Act of 1934 and SEC’s Rule 10b-5. …
Read More Client Advisory – Supreme Court Rules Mutual Fund Investment Advisor Not Liable for Securities Fraud in Private Securities Fraud Action