Cornerstone Research Releases Study of Accounting Class Action Securities Cases

On the eve of the tenth anniversary of the enactment of The Sarbanes Oxley Act, Cornerstone Research has released a study of the filing trends and settlements of securities class action lawsuits involving accounting allegations. The May 2012 report entitled "Accounting Class Action Filings and Settlements...

Class Certification Denied in Securities Suit Against U.S.-Listed Chinese Company

During 2010 and 2011, a number of securities class action lawsuits were filed against U.S.-listed Chinese companies. Plaintiffs' lawyers seemed eager to pursue these cases despite likely procedural and practical challenges such as likely difficulties in obtaining discovery, as well as language and...

Rep. Frank Introduces Bill to Prohibit Insurance for Compensation Clawbacks and Civil Money Penalties

On May 30, 2012, Representative Barney Frank introduced a bill entitled the "Executive Compensation Clawback Full Enforcement Act" ( here ) that by its own terms is designed to "prohibit individuals from insurance against possible losses from having to repay illegally-received compensation...

Management Liability Insurer Must Defend Insured Accused of Sexual Molestation

The criminal trial in which Jerry Sandusky, the former defensive coordinator of Penn State's football team, stands accused of sexually abusing at least 10 boys over a 15-year period began Tuesday, June 4, 2012, in Bellefonte, Pa. Sandusky has been charged with forty criminal counts. Sandusky has...

NY Appellate Court: Excess Insurers Off the Hook Where It Can't Be Determined if Underlying Insurance Exhausted

In the latest of what is now a lengthening line of cases, on June 12, 2012, the New York Supreme Court, Appellate Division, First Department, applying Illinois law, ruled in a coverage case brought by JPMorgan Chase that owing to settlements by underlying carriers in a professional liability insurance...

Tough Week for Fee-Seeking and "Fast Filer" Plaintiffs' Lawyers

Our legal system is one of our society's crowning achievements. But for all of its grandeur, our legal system is not without its flaws. Among other things, our system encourages litigiousness that all too often involves frivolous suits and lawyers'-fee driven litigation, including the recent...

Interview with Professional Liability Insurance Industry Leader David Bell

Along with everyone else in the professional liability insurance industry , I was fascinated by the news that my good friend David Bell, with whom I served on the Professional Liability Underwriting Society (PLUS) Board of Trustees, was leaving Bernuda and his position at Allied World Assurance Company...