Emerging Issues Analysis: Reed Smith on PENDERGEST-HOLT V. CERTAIN UNDERWRITERS’ AT LLOYD’S OF LONDON

By John Berringer and Jill Averett, Reed Smith, LLP On March 15, 2010, the Fifth Circuit affirmed the decision of the U.S. District Court for the Southern District of Texas, PENDERGEST-HOLT V. CERTAIN UNDERWRITERS’ AT LLOYD’S OF LONDON , 2010 U.S. App. LEXIS 5384 (5 th Cir. Tex. Mar...

Stanford Directors And Officers Insurance Barred By Money Laundering Exclusion

HOUSTON -- (Mealey's) Insurers have proven that their policies' money laundering exclusion precludes coverage for directors and officers insureds' defense costs in underlying criminal and SEC litigation involving the alleged Stanford Ponzi scheme, a Texas federal judge held Oct. 13, granting...

Kara Altenbaumer-Price and Amy Elizabeth Stewart on “Ponzi Schemes, and Money Laundering, and Defense Costs! Oh My!”

By Kara Altenbaumer-Price and Amy Elizabeth Stewart In “Ponzi Schemes, and Money Laundering, and Defense Costs! Oh My!,” by Kara Altenbaumer-Price and Amy Elizabeth Stewart, appearing in the September/October 2010 issue of Coverage, the authors examine Directors and Officers coverage...

The June 2011 Release of New Appleman New York Insurance Law is Now Available on Lexis.com

The newest release of New Appleman New York Insurance Law is available on lexis.com as of June 23, 2011. The release contains updates to reflect recent case law and interpretations issued by the Department of Insurance and the Office of General Counsel, as well as recent statutory and regulatory amendments...

Advisory—UK Bribery Act 2010 – Consider Your Directors and Officers Insurance?

By Raymond L. Sweigart and Rene L. Siemens, Partners, Pillsbury Winthrop Shaw Pittman LLP Section 7 of the UK Bribery Act that came into force on 1 July establishes a strict liability corporate offense for failure to prevent bribery. The only defence recognized in the Act is where an affected commercial...

Surge of Securities Litigation Against U.S.-Listed Chinese Companies Raises Critical D&O Insurance Issues

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services and Peter M. Gillon, Partner, Pillsbury Winthrop Shaw Pittman LLP One of the most distinctive U.S. litigation trends over the last twelve months has been the surge of securities class action lawsuits filed against...

Directors and Officers Insurer Sued By FDIC Over Bank Failure

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services In the FDIC's latest lawsuit filed in its role as receiver of a failed bank, the FDIC not only named as defendants nineteen former directors and officers of the failed bank, but also included as defendants seventeen...

LexisNexis® Insurance Law Community Podcast: Tim Burns on D&O Insurance Disputes and Arbitration

On this edition, Timothy Burns of Perkins Coie LLP discusses D&O policies and arbitration, consolidation issues and multiple insurers, the rise in disputes over defense costs and special issues involving excess insurers and consent. Mr. Burns is the author of the Directors and Officers Insurance...

A Primer for Managing Risks

(Lexis.com subscribers may access the cases below by clicking on the links) By Verne A. Pedro, Special Counsel, Goldberg Segalla LLP Injured visitors, faulty construction, mold, critters, fire, natural disasters-businesses face substantial risks from a host of potentially devastating unforeseen...

D&O Insurance: Layers and Tiers and Problems

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services One of the critical issues in putting together a D&O insurance program is the question of how to structure the insurance. Among the more complex issues is how to divide the program between "traditional"...

Perkins Coie LLP on Avoiding Gaps in Insurance Coverage for Private-Equity-Placed Directors at Portfolio Companies

By Michael T. Sharkey, Partner, Perkins Coie LLP Directors & Officers ("D&O") liability insurance policies purchased by private equity and venture capital firms frequently include "Outside Directorship" coverage, designed to protect the individuals that those firms place...

D&O Insurance: Bank Directors' Notice of FDIC Failed Bank Suit Held Timely

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services On February 5, 2013, in a detailed opinion exploring the nuances of a D&O policy's extended reporting period provisions, Western District of North Carolina Judge Henry Herlong Jr. determined that the directors...

Directors and Officers Insurance: Separate Claims Deemed a Single Claim--What Are the Implications?

By Kevin M. LaCroix, Esq., Executive Vice President, OakBridge Insurance Services As I have previously noted (refer for example here ), one of the most vexing issues in the D&O claims arena is the questions of whether or not two claims are or are not interrelated. If the two are interrelated,...

Traub Lieberman Insurance Law Blog: Mississippi Court Holds D&O Policy Not Triggered By Real Estate Scheme

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In its recent decision in State Farm Fire& Cas. Co. v. Anderson , 2013 U.S. Dist. LEXIS 57837 (S.D. Miss. Apr. 23, 2013) [ enhanced version available to lexis.com subscribers ], the United States District Court for the Southern...

Perkins Coie LLP on Britt v. Twin City: Private Equity Firms Should Review the Scope of the Insurance Purchased to Cover Claims Against Them and the Individuals They Place as Directors

The recent decision in Britt v. Twin City Fire Insurance Co. , C.A. No. 8SACV 12-1355-JST (JPRx), slip op. (C.D. Cal. June 26, 2013), highlights important insurance considerations for private equity funds and the individuals they place as directors or officers at portfolio companies. This commentary...

Washington Appellate Court Enforces Strict Exhaustion Language in Excess Directors and Officers Liability Policies

By Leslie S. Ahari and Gabriela A. Richeimer The State of Washington has joined the growing list of jurisdictions that have enforced strict exhaustion language in an excess policy’s insuring agreement in favor of the excess carrier in situations where the insured has settled with the underlying...

Texas Court Holds Suit Under D&O Policy Not Ripe for Declaratory Judgment

In its recent decision in American Construction Benefits Group, LLC v. Zurich Am. Ins. Co., 2014 U.S. Dist. LEXIS 5147 (N.D. Tex. Jan. 15, 2014) [ enhanced version available to lexis.com subscribers ], the United States District Court for the Northern District of Texas had occasion to consider whether...

10th Circuit Certifies Late Notice and Reporting Questions to Colorado Supreme Court

In its recent decision in Craft v. Philadelphia Indem. Ins. Co ., 2014 U.S. App. LEXIS 2680 (Feb. 11, 2014), [ enhanced version available to lexis.com subscribers ], the United States Court of Appeals for the Tenth Circuit, applying Colorado law, had occasion to consider whether Colorado’s notice...

Directors' and Officers' Insurance and Its Role in Government Investigations

By Richard W. Westling and Mark M. Bell In Directors’ and Officers’ Insurance and Its Role in Government Investigations, authors Richard W. Westling and Mark M. Bell point out that the number, scope, and breadth of government investigations have increased dramatically. The cost of responding...

Does a D&O Policy That Expressly Covers Antitrust Claims Exclude Antitrust Damages?

By Seth Lamden According to the court in William Beaumont Hospital v. Federal Insurance Co ., No. 13–1468 (6th Cir. Jan. 16, 2014) [ enhanced version available to lexis.com subscribers ], the answer is "no." The court in that case held that a hospital's settlement of a private...

When Whistleblowers Strike, Give a Little Whistle for D&O Insurance

Anderson Kill presents its 11th annual D&O seminar: When Whistleblowers Strike, Give a Little Whistle for D&O Insurance When: Wednesday, April 09, 2014, 3-5 p.m.; cocktail reception follows Where: The Westin Times Square, 270 West 43rd Street - New York, NY Price: Free Whistleblower suits...

D&O and Professional Liability 2013 - A Year In Review

Troutman Sanders is pleased to announce the release of 2013 | A Year In Review . This free annual publication by the Insurance Section highlights many of the key decisions delivered in 2013 by courts in nearly every jurisdiction of the country regarding a number of topics of significance to D&O and...

Halliburton Decision May Drive Up Litigation Costs and Impact Settlement

The U.S. Supreme Court’s recent decision in Halliburton Co. v. Erica P. John Fund, Inc. , [ enhanced version available to lexis.com subscribers ], is not the game changer for securities litigation that some hoped for, but D&O insurers will be keeping a close eye on securities cases to see whether...

D&O Coverage: The Devil Is In the Details

A five-paragraph opinion by the New York Appellate Division suggests the potentially devastating consequences of ignoring the fine print of Directors & Officers Liability insurance policies. In Associated Community Bancorp., Inc., et al. v. St. Paul Mercury Ins. Co. , 2014 NY Slip Op 04697 (App....

Final Adjudication of Regulatory Enforcement Actions and Its Effect on D&O Insurance Coverage: Recent Developments

By Gregory J. May, Partner, Nelson Mullins Riley & Scarborough LLP In the wake of the 2008 crash, federal regulators, including the Securities and Exchange Commission ("SEC") and the Federal Deposit Insurance Corporation ("FDIC"), have markedly increased their investigation...