Among the most frequently recurring and arguably most
vexatious D&O insurance coverage issues are the questions of the carrier's
obligation under the policy for defense expenses incurred either in connection
with an informal SEC investigations or an internal investigation.
Numerous questions surround the SEC’s new policy requiring enforcement action defendants in “egregious” cases to admit to wrongdoing in order to settle with the agency, rather than simply agreeing to neither admit nor deny the agency’s allegations. As I discussed in a prior post...