In two decisions last week – one in the Sixth Circuit and one in the First Circuit – federal appellate courts set aside lower court dismissals of securities class action lawsuits. Although the two cases are different and the two appellate opinions address different legal issues, the two decisions both seem to suggest a similar
Jury Verdict in Failed Bank Legal Malpractice Action:
As discussed in an article in the Sarasota Herald Tribune (here), on May 22, 2013, a Middle District of Florida jury returned a verdict against Sarasota law firm Icard Merrill, and one of its partners, Robert Messick, in a legal malpractice action arising out of the collapse of the failed First
FDIC’s Latest Failed Bank Litigation Update Reflects Increasing Lawsuit Filings
According to the latest update on the FDIC’s website, the pace of the agency’s filing of failed bank lawsuits picked up considerably in the last month. According to the agency’s website (here), which the agency updated on May 22, 2013 the agency has now filed a total of 63 lawsuits against the directors
Despite Setbacks, Libor-Scandal Claimants Press Ahead
The early returns in the Libor-scandal related litigation have not been favorable for the claimants. As noted here, on March 29, 2013, Southern District of New York Judge Naomi Reice Buchwald substantially granted the motion to dismiss in the consolidated Libor-scandal antitrust litigation, and as discussed here, on May 13, 2013, Southern District
D&O Insurance: Separate Claims Deemed a Single Claim–What Are the Implications?
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, they are deemed a single claim for purposes of determining the claims made date. The
D&O Insurance: Untimely Notice Precludes Coverage
In a May 16, 2013 decision (here), Eastern District of Missouri Magistrate Judge Terry Adelman, applying Missouri law, determined that the failure of an insured under a management liability insurance policy to provide timely notice of claim precluded coverage under the policy, even in the absence of a showing of prejudice to
The Travel Issue: Madrid Edition
The D&O Diary’s European sojourn concluded with a brief stop earlier this week for business meetings in Madrid. I had never been to Madrid before. Like many Americans, I have a deep attachment to Paris, a city I have visited many times and for which I have an abiding affection. However, after my visit to
Motion to Dismiss Granted in Barclays Libor-Scandal Securities Suit
In a May 13, 2013 order (here), Southern District of New York Judge Shira Scheindlin granted defendants’ motion to dismiss the Libor-scandal related securities suit that had been filed against Barclays and two of its former executives following the company’s entry into a massive Libor-related settlement last summer. The suit’s dismissal is just
The Travel issue: Barcelona Edition
The D&O Diary is on assignment in Europe this week. The first stop was in Barcelona, where I was a speaker at an annual industry event hosted by my good friends at HCC Global. The education session was a success. As for Barcelona itself … what can you say about a city that has a
Cornerstone Research Releases Failed Bank Litigation Update
Failed bank lawsuit this year area on pace to total the largest annual number of lawsuits yet during the current bank failure wave, according to an April 2013 report from Cornerstone Research entitled “Characteristics of FDIC Lawsuits Against Directors and Officers” (here). The report identifies several factors – including the FDIC’s recently published