D&O Liability

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On April 13, 2010, the U.S. Senate Permanent Subcommittee on Investigations (the “Senate Subcommittee”) heard testimony from former executives of Washington Mutual Bank (“WaMu”) in its first day of hearings titled “Wall Street and the Financial Crisis: The Role of High Risk Home Loans.” …
Read More Former Executives from WaMu Testify in Senate Hearings

On March 11, 2010, the Court of Appeals for the Sixth Circuit affirmed a district court decision permitting an insured to shift the burden of primary coverage for various securities-related claims to its previous insurer by purchasing an extended reporting period (ERP) and adding an endorsement to its current primary policy making it specifically excess of the prior policy. 

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Read More Sixth Circuit Upholds An Insured’s Decision to Amend its Current Policy So As to Render A Prior Policy the Sole Primary Insurance

On February 17, 2010 Judge Kaplan issued a written opinion granting in part and denying in part the individual Lehman defendants’ motion to dismiss in In re: Lehman Brothers Mortgage-Backed Securities Litigation. 

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Read More Lehman Defendants’ Motion to Dismiss Granted in Part and Denied in Part in In re: Lehman Brothers Mortgage-Backed Securities Litigation

Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York granted McGraw Hill and Moody’s (together, the “Ratings Agencies”) motions to dismiss in both Tsereteli v. Residential Asset Securitization Trust 2006-A8 et al. and In re: IndyMac Securities Litigation — but without issuing detailed written

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Read More Two More Dismissals of Securities Act Lawsuits Against Rating Agencies

According to the Houston Chronicle, U.S. District Judge David Hittner, who is presiding over R. Allen Stanford’s criminal proceeding, has ordered Lloyd’s of London to pay for the criminal defense attorneys defending Mr. Stanford and two other officers of his company who were recently indicted for allegedly running a $7 billion Ponzi scheme. 

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Read More Judge Orders Insurer to Cover R. Allen Stanford’s Defense Costs

If you are a registered investment adviser who – directly or indirectly – has authority to obtain possession of client funds or securities (“custody”), the SEC has increased your compliance burden beginning March 12, 2010. 

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Read More SEC Tightens Custodial and Audit Requirements for Registered Investment Advisers who Control Client Assets

This session’s panel provided insight into the policyholder’s expectations with regard to the scope of coverage being purchased and claims handling.  The panel discussed in detail what policyholders expect from their brokers and their insurers at the procurement stage, including during coverage negotiations and setting the broker’s fee, and also in the event of a claim. 

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Read More PLUS D&O Symposium Day 2: Afternoon Session II

During a candid discussion about his role as the federal government’s compensation czar, keynote speaker Kenneth Feinberg described his role in setting executive compensation for institutions that received substantial TARP funds. Though Mr. Feinberg agrees that, to an extent, his work is a “sideshow,” he made a compelling case that the true impact of his work has less to do with the companies that are subject to his mandate and more to do with those entities that voluntarily adopt his approach to executive compensation. 

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Read More PLUS D&O Symposium Day 2: Luncheon Speaker Kenneth Feinberg