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Peter Webster

As I have frequently noted on this blog, most recently here, the question of whether or not the Insured vs. Insured applies to preclude coverage is a frequently recurring D&O insurance coverage issue. In the following guest post, Peter Webster of the Carlton Fields law firm takes a look at a recent Florida intermediate appellate court decision interpreting and applying a D&O insurance policy’s Insured vs. Insured exclusion. Peter and his Carlton Fields colleague Patricia Thompson represented the insurer in the proceeding. I would like to thank Peter for his willingness to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Peter’s guest post. Continue Reading Guest Post: Court Holds Insured vs. Insured Exclusion Unambiguous, Precluding Coverage

sec sealThe Securities and Exchange Commission is primarily concerned with public companies and the securities markets in which the shares of public companies trade. However, in a series of recent speeches and presentations as part of what the agency had called the “Silicon Valley Initiative,” the agency made it clear that it is increasingly concerned with private and pre-IPO companies as well, particularly so-called “unicorns” – that is, the private start-up firms with valuations greater than $1 billion. SEC Chairman Mary Jo White highlighted these concerns in a March 31, 2016 speech at the Rock Center for Corporate Governance at Stanford Law School, a copy of which can be found here.

 

As summarized in an April 4, 2016 memo from the Fenwick & West law firm about the SEC’s Silicon Valley Initiative, “the SEC is closely watching the conduct of private companies as well as emerging platforms that trade in private company securities, and will bring enforcement cases as needed to protect investors.” The agency’s recent presentations and SEC Chair White’s speech, the memo said, underscored that “the SEC expects even private companies to embrace and demonstrate sound corporate governance.”

 

As discussed below, these pronouncements from the SEC raise troublesome questions about what has in the past been viewed as a clear demarcation between the potential liability exposures for private and public companies. Continue Reading SEC Warning: It Is Watching Private Companies

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Michael W. Peregrine

In the following guest post, Michael W. Peregrine, a partner at the McDermott, Will & Emery law firm, take a look at regulators’ new “gatekeeper” expectations that now face corporate directors. This article is reprinted with permission from Corporate Board Member, First Quarter, 2016. I would like to thank Michael for his willingness to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Michael’s guest post. Continue Reading Guest Post: Managing Gatekeeper Anxiety

adaIn a March 21, 2016 ruling (here), a California state court judge has held that a retailer violated the American s with Disabilities Act because its website was not accessible to a visually-impaired plaintiff. According to a March 29, 2016 post on the Seyfarth Shaw law firm’s ADA Title III blog  (here), with this ruling, the California court became “the first in the nation” to rule that a website violated the ADA’s public accommodation accessibility requirements.  As discussed below, the ruling could herald an increase of ADA litigation involving website accessibility. Continue Reading California Court Rules Retailer’s Website Violates ADA Accessibility Requirements

michigan1Many issues become complicated in the bankruptcy context. That is certainly true of D&O insurance coverage issues. A recent coverage decision out of the Western District of Michigan illustrates this point. In a March 31, 2016 opinion (here), Judge Janet Neff, applying Michigan law, held that the relevant D&O insurance policies’ Insured vs. Insured exclusion precluded coverage for a claim that was first transferred by a bankrupt company to a Liquidation Trust and then asserted by the Liquidation Trust against the company’s former directors and officers. Continue Reading Insured vs. Insured Exclusion Bars Coverage for Liquidation Trust’s Claim Against Bankrupt Firm’s Execs

gehry bio coverDuring a March 2015 trip to Paris, I visited the city’s newest art museum, the Fondation Louis Vuitton (pictured below), which had opened the preceding November. The museum is located in the Bois de Boulogne, and is housed in a dramatic building designed by the famed American architect, Frank Gehry. The glass, wood and stone structure is built in the shape of sailboat sails inflated by the wind.

 

The building itself is a challenge for the art inside. The building is so massive and its style so flamboyant that the art inside is almost overwhelmed. The overall effect is that the art feels almost insignificant and ephemeral. At the time of my visit, this effect seemed discordant to me. On further reflection, however, I have decided that this effect is a tribute to the building’s power – the building itself is a work of art, one arguably more fully realized that the art objects it contains. Continue Reading Book Review: Building Art – The Life and Work of Frank Gehry

stockmarketticker2The IPO market in the U.S. is off to a slow start in 2016; according to Renaissance Capital, only eight offerings have priced so far this year, through March 29, 2016. The IPO slowdown actually began in the second half of 2015, when market volatility and stock price declines encouraged some prospective IPO companies to stay on the sidelines rather than complete their planned offering. But while the number of IPOs in 2015 declined compared to the immediately preceding years, there still were a number of interesting IPO trends during 2015, as detailed in a March 24, 2016 report from the Wilmer Hale law firm entitled “2016 IPO Report” (here). As discussed below, the report describes a number of the important characteristics of the 2015 IPOs. The report also contains some interesting discussion of the attributes of successful IPOs and an overview of the potential liabilities of directors of IPO companies. Continue Reading Overview of 2015 IPOs

cornerstone reserach pdfAggregate and average securities class action lawsuit settlements increased significantly in 2015 compared to the year before, according to the latest annual report from Cornerstone Research. Among reasons for the increase in aggregate settlement amounts is the increase in the absolute number of settlements during the year. The increase in the average settlement amount is largely attributable to an increase in the number of “mega” settlements. While overall and average settlement amounts increased during the year, the number of smaller settlements also increased, and median settlement amounts held steady. The Cornerstone Research report, entitled “Securities Class Action Settlements: 2015 Review and Analysis,” can be found here. Cornerstone Research’s March 29, 2016 press release about the report can be found here. Continue Reading Cornerstone Research: Aggregate and Average Securities Suit Settlements Surged in 2015

Rohan
Rohan Negandhi

I am always pleased to be able to publish updates on important developments in other jurisdictions. In following guest post, I reproduce two articles about important developments in India. The first article discusses the widening scope of India’s Prevention of Corruption Act. The second article discusses a recent decision of the Supreme Court of India with respect to the imposition of penalties under the Indian securities laws. The two articles were submitted by Rohan Negandhi, who is a Financial Lines Underwriter with Tata AIG General Insurance Company Limited, which is an Indian General insurance Company, and a joint venture between the Tata Group and American International Group (AIG). I would like to thank Rohan for submitting his articles. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here are Rohan’s articles. Continue Reading Guest Post: Developments Under Indian Anti-Corruption and Securities Laws

nystateMany D&O insurance policies contain specific prior litigation exclusions precluding coverage for claims made during the policy year related to proceedings commenced prior to the policy inception. A question that can arise is the issue of what type of prior proceedings or actions triggers this exclusion. The Second Circuit recently considered whether a Maryland attorney general’s office’s letter threatening that it “may” bring an enforcement action triggered an exclusion precluding coverage for a claim “involving” any prior “demand, suit or other proceeding.” In a March 7, 2016 summary order (here), the appellate court, applying New York law, affirmed the district court’s ruling that the AG’s prior letter was a “demand,” and therefore that the policy unambiguously precluded coverage for the insured’s defense fees incurred in a later U.S. Department of Justice action. Continue Reading D&O Insurance: Regulator’s Previous Threat to File Action Triggers Prior Litigation Exclusion