D&O Liability

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Edwards Angell Palmer & Dodge LLP continues its live blogging from the PLUS D&O Symposium. There were several interesting points discussed during the first panel discussion this morning. …
Read More Live Blog: D&O Symposium Thursday Panel I – Regulatory Change Simplified: A Review of Key D&O Regulatory Issues

Again reviving a coverage claim by a former bank director against her D&O insurer, the United States Court of Appeals for the Eighth Circuit performed a useful service by closely analyzing the policy’s grant of coverage and exclusionary clauses.  The result is a reminder to carriers, insureds, and counsel alike that they must pay careful attention to the actual language used in an insurance policy when deciding whether coverage exists for a particular claim. …
Read More Eighth Circuit Emphasizes Importance of Reading D&O Policy Language

As we reported earlier in the week, the Federal Deposit Insurance Corporation (“FDIC”) has begun filing lawsuits against the directors and officers of banks that it now holds in receivership .  The lawsuits are consistent with previous public statements in which the FDIC committed to try to recover, from the directors and officers of these failed banks, some of the $2.5 billion lost to bad loans in recent years.  It seems likely that that the D&O policies issued to those directors and officers will be called upon to respond to these lawsuits. …
Read More FDIC Continues Lawsuits Against Directors & Officers of Failed Banks

The FDIC brought suit last week against the directors and officers of a bank in FDIC receivership, in what appears to be the implementation of a strategy it announced earlier this year to recover up to $2.5 billion in damages caused by bad loans. …
Read More FDIC Brings Suit Against Defunct Bank’s Directors and Officers, Part of Larger Effort to Recover on Bad Bank Loans

Following the reasoning of the First Circuit in its Genzyme decision (see prior blog entry here), a federal court in Virginia has granted summary judgment to an insured whose carrier had sued to recoup a $15 million settlement under a D&O policy.  Houston Casualty Company v. Sprint Nextel Corporation, No. 09-cv-1387 (E.D.Va. Nov. 22, 2010). …
Read More Virginia Court Follows First Circuit’s Genzyme Reasoning, Rejects Carrier’s Bid to Recoup $15mm D&O Payout

A federal court in Florida ruled this fall that a D&O policy does not cover the insured company’s costs in responding to an SEC investigation, nor its internal investigation costs in response to a whistleblower complaint. …
Read More Court Holds That D&O Policy Does Not Cover Internal Investigations Or Costs In Responding to SEC Investigations

In a verdict handed down on Thursday (11/18/10) ,a South Florida federal jury found that BankAtlantic violated federal securities laws by making several false statements to investors during the class period.  These false statements included seven statements made by bank executives during investor conference calls. …
Read More BankAtlantic Loses Class Action Trial

After a preliminary injunction hearing, the United States District Court for the Southern District of Texas has determined that D&O insurers for the Stanford Financial Group and various related entities are no longer required to advance defense costs relating to criminal charges and civil litigation filed against Mark Kuhrt, Gilbert Lopez and R. Allen Stanford. …
Read More Court Finds Insurers No Longer Required to Advance Defense Costs for Certain Stanford Individuals Due to Money Laundering Exclusion