UBS recently agreed to buy back $18.6B in auction rate securities (ARS) and pay $150M in penalties ($75M to the State of New York, and $75M to the North American Securities Administrators Association) to settle allegations made by the New York Attorney General and the Securities and Exchange Commission that UBS fraudulently marketed the safety of ARS to customers.
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New York Developments
Merrill Lynch Seeks Dismissal of Subprime Based Securities Class Action
A group of Merrill Lynch entities (Merrill Lynch) recently filed a motion to dismiss a securities class action pending in United States District Court for the Southern District of New York. The plaintiffs generally assert that Merrill Lynch failed to disclose the extent of its subprime exposure arising out of its holdings in collateralized debt obligations.
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New York State Court Finds That Insurer’s Nearly Two-Month Delay in Denying Coverage was Unreasonable as a Matter of Law
By Troutman Pepper Locke on
Plaintiff Long Island Insurance Company (“LIICO”) instituted a declaratory judgment action and moved for summary judgment against certain defendants, including its insured, Oneil Johnson (“Johnson”), seeking an order that it had no duty to defend or indemnify Johnson in an underlying personal injury action.
Hedge Fund Liquidators Barred from Bringing Negligence Claims Against Auditors
By Troutman Pepper Locke on
A New York state court recently dismissed claims brought by the liquidator of a hedge fund against the fund’s accountants on the ground that the claims were barred by the doctrine of in pari delicto. Bullmore v. Ernst & Young Cayman Islands, No. 104314/05 (June 19, 2008).
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New York Imposes Additional Charitable Gift Annuity Requirements
By Troutman Pepper Locke on
In response to concerns over the adequacy of reserves held by some charitable gift annuity programs, the New York State Insurance Department issued a notice imposing additional requirements for such reserves.
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New York Federal Court Finds That Doctrine of Manifest Disregard of the Law is No Longer Good Law
By Troutman Pepper Locke on
Robert Lewis Rosen Associates, Inc. (“RLR”) petitioned the United States District Court for the Southern District of New York to vacate an arbitration award issued in favor of William Webb (“Webb”) on the grounds that the arbitrator acted in manifest disregard of the law.
NY Insurance Department Announces Successful Closing of Agreement to Recapitalize Syncora Holdings, Ltd.
On July 29, XL Capital (“XL”) announced plans to raise $2.5 billion through an offering of ordinary shares and equity security units, the proceeds of which were to be used to recapitalize Syncora Holdings, Ltd. (formerly known as Security Capital Assurance) (“Syncora”), a bond insurance company that XL spun off in 2006. …
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Federal Court Rules That Reinsurer Was Not Prejudiced By Redomestication of Insurer Carried Out Through Deceit
In a recent decision originating from the United States District Court for the Southern District of New York, on remand from the Second Circuit Court of Appeals, the court held that (i) there was no basis for finding that joint liquidators for a Bermuda insurer were deficient or engaged in any misconduct, or that their actions resulted in any prejudice to reinsurer Commercial Union and (ii) that vacating the underlying arbitration award and granting injunctive relief would confer an undeserved benefit on Commercial Union. …
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The New York Insurance Department and New York Attorney General Held their Second and Third Joint-Hearings Regarding Insurance Producer Compensation
By Troutman Pepper Locke on
On Wednesday, July 23rd and Friday, July 25th, the New York State Insurance Department and the New York Attorney General held the second and third public hearings in a series of three hearings concerning producer compensation and disclosure of fee arrangements to consumers.
August 28 EAPD Webinar: Insurance Implications of Climate Change
By Troutman Pepper Locke on
Posted in Bermuda, Catastrophe Claims, Climate Change, Connecticut Developments, European Union, Florida Developments, Hong Kong, Industry Developments, Latin American Developments, Life Insurance & Annuities, Massachusetts Developments, New Jersey Developments, New York Developments, United Kingdom, United States
On Thursday, August 28, Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department will host a webinar entitled “Insurance Implications of Climate Change”. This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. …
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