News & Analysis as of

D&O Insurance Fraud

Wiley Rein LLP

Coverage Barred by Prior Acts Exclusion Under First Policy; No Coverage Under Second Policy Because Defendant did not Qualify as...

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The United States District Court for the District of New Mexico, applying New Mexico law, has held that a prior acts exclusion in a directors and officers policy barred coverage for an investor lawsuit alleging a scheme to...more

K&L Gates LLP

UK Offence of 'Failure to Prevent Fraud': D&O Insurance Can Help the Board to Mitigate Risk

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In 2023, the UK Government introduced the Economic Crime and Corporate Transparency Act (the Act) with the aim of reducing economic crime in the UK. The Act introduced a number of measures including a new offence of "failure...more

Foley & Lardner LLP

How Companies Can Audit Insurance Policies to Determine PFAS Coverage

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Companies operating in the food and beverage industry are dealing with PFAS-related issues on a daily basis. So far, twelve states have passed legislation regulating PFAS, and each of those twelve states explicitly targets...more

Womble Bond Dickinson

Sam Bankman-Fried Case Provides Lessons on Fraud and D&O Insurance

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Sam Bankman-Fried’s criminal trial started this week; and on the same day, he sued one of his director & officer insurers. And a lot of people are asking, why? Is the timing a coincidence or on purpose? Shouldn’t he be...more

Wiley Rein LLP

Delaware Supreme Court Affirms Decision Below in Favor of Insurers, Holds “Relatedness” is Determined By Policy Language and Not...

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In a win for Wiley Rein’s client, the Delaware Supreme Court has affirmed the trial court’s decision that a securities class action and an opt-out case constitute related Claims, such that the opt-out case is excluded from...more

Lowenstein Sandler LLP

In the Know: The Lowenstein Insurance Recovery Group’s Tip of the Month - October 2021

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A recent coverage case from Illinois is a helpful reminder to policyholders that they should not take no for an answer when insurers deny a claim based on uninsurability, restitution, disgorgement, or fraud. In fact, those...more

White and Williams LLP

NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional

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Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property...more

Lowenstein Sandler LLP

In the Know: The Lowenstein Insurance Recovery Group’s Tip Of The Month - June 2021

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Companies should routinely assess their directors and officers (“D&O”) insurance policies to ensure they maximize coverage for business-specific and ever-evolving risks. This exercise is also important when the policyholder...more

Carlton Fields

Delaware Supreme Court Affirms Insurability of Fraud and Larger Settlement Allocation Rule

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On March 3, 2021, the Supreme Court of Delaware issued a significant decision in the D&O coverage space, RSUI Indemnity Co. v. Murdock, analyzing whether fraud claims against insureds were covered under an excess D&O policy...more

White and Williams LLP

The Delaware Supreme Court’s Murdock Coverage Ruling is a Challenge for D&O Insurers

On March 3, 2021, the Delaware Supreme Court issued a unanimous decision in RSUI Indemnity Company v. David H. Murdock & Dole Food Company that affirmed all of the trial court’s pro-insured coverage rulings relating to choice...more

Pillsbury Winthrop Shaw Pittman LLP

Implications of PPP Certifications for D&O Coverage

Check your D&O Policy carefully before signing. In the coming months, we will inevitably see new charges brought by the DOJ against borrowers for false statements made in PPP loan applications....more

Morris James LLP

Delaware Public Policy Does Not Preclude D&O Insurance Coverage for Fraud

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In Arch Insurance v. Murdock, (Del. Ch. Mar. 1, 2018), a D&O insurance coverage dispute, the state Superior Court’s complex commercial litigation division reasoned broadly to hold that, absent a contrary choice of law clause,...more

McDermott Will & Emery

Corporate Law & Governance Update - January 2017

The following developments from the past month offer guidance on corporate law and governance law as they may be applied to nonprofit health care organizations: HEALTH POLICY INITIATIVES - Perhaps the most...more

Holland & Knight LLP

Religious Institutions Update: August 2016

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When was the last time your organization reviewed your insurance policies? Not all policies are equal. Many religious organizations are underinsured. Most should have general liability, property, professional liability,...more

Pullman & Comley, LLC

Alert: Law Firms May Have Duty To Warn Clients of Possible Insurance Coverage

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A recent decision by a New York State Appellate Court has again reminded law firm risk managers of a possible law firm obligation to clients, especially those recently served with a lawsuit. The Court held that defense...more

Proskauer Rose LLP

Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away

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Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought...more

Cozen O'Connor

The Impact of Halliburton on Directors and Officers Insurance

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Over the past year, directors and officers have been anticipating the Supreme Court’s ruling in Halliburton Co. et al. v. Erica John Fund, Inc., No. 13-317. In its recent 9-0 decision, the Supreme Court retained the...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Supreme Court Allows Rebuttal of Fraud on the Market at Class Certification Stage in Halliburton Co. v. Erica P. John Fund"

The Supreme Court of the United States today in Halliburton Co. v. Erica P. John Fund upheld the fraud-on-the-market presumption of reliance first recognized by the Court in Basic v. Levinson, but gave defendants a new tool...more

Mintz - Securities & Capital Markets...

Is Your D&O Policy Ready For The Halliburton Decision?

Any day now the United States Supreme Court will announce its decision in Halliburton Co. v. Erica P. John Fund, Inc. If the Supreme Court rules to neither reject nor affirm “fraud on the market,” the importance of event...more

Cozen O'Connor

D&O Carrier Allowed to Recoup Defense and Indemnity Costs After Employees Plead Guilty to Misconduct

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In Protection Strategies, Inc. v. Starr Indemnity & Liability Co., the U.S. District Court for the Eastern District of Virginia allowed an insurer to recoup more than $670,000 in costs paid for the insured first to respond to...more

Dorsey & Whitney LLP

BAC CEO Pays $10 Million Plus D&O Bar To Settle NYAG Market Crisis Case

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Former Bank of America CEO Kenneth Lewis agreed to pay $10 million and to be barred from serving as an officer or director of a public company for three years to settle fraud charges brought by the New York Attorney General...more

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