In a sweeping July 1, 2011 opinion in MBIA’s favor, the Second Circuit held that the company’s D&O insurance policies cover the investigative and special litigation expense the company incurred during a regulatory investigation of its accounting practices. This case had been closely watched in the D&O insurance community because of widespread carrier concerns over
Guest Post: D&O Insurers Be Wary: U.K. Bribery Act Takes Effect July 1, 2011
As discussed in a prior post (here), the U.K Bribery Act of 2010 is now set to take effect on July 1, 2011. In a guest post below, Anjali Das, a partner in the Chicago office of the Wilson Elser law firm, takes a look at the Act’s key provisions and requirements and
D&O Insurance: Does “Fraudulent” Mean “Fraudulent”?
If a verdict form contains the jury’s specific finding that the insured engaged in “fraudulent, malicious, oppressive, wanton, willful, or reckless conduct,” you might think that would trigger the exclusion for fraudulent misconduct in the applicable D&O insurance policy. But apparently not, at least according to a May 12, 2011 Southern District of West Virginia ruling
D&O Insurance: “Where’s My Price Reduction?”
One of the most challenging assignments for those of us in the D&O insurance business is to try to explain to those outside the industry how D&O insurance pricing works. The explanation is difficult enough as a general matter, but it is often even more difficult to explain in connection with a specific transaction. The
Wage and Hour Claims Exposure and EPL Insurance
Cases alleging violations of wage and hour laws have been a growing source of litigation activity in recent years. These cases present a variety of allegations, such as unpaid overtime, employee misclassification, and failure to pay minimum wage. A March 21, 2011 NERA Economic Consulting publication entitled “Recent Trends in Wage and Hour Settlements” takes a
Guest Post: Judge Rakoff Again Criticizes SEC Settlements, How Will D&O Insurers Respond?
I am pleased to reproduce below a guest post from my friend Maurice Pesso, who is a parner in the White & Williams law firm, and his colleagues Sarah Katz Downey. I welcome guest contributions from responsible commentators. This article first appeared as a White & Williams law firm memo. Please note
Guest Post: Professionalism in the D&O Claims Process — Civil Behavior is Just Good Business
I am pleased to be able to print below a guest post from my friend and industry colleagueDonna Ferrara. Donna is Senior Vice President and Managing Director, Management Liability Practice Group, at Arthur J. Gallagher & Co. As Donna indicates, this guest post is the result of an email exchange between Donna and
Does D&O Insurance Cover Fee Awards to Derivative Plaintiffs?
A frequent component of derivative litigation resolution is an award to the plaintiffs of the fees and expenses the plaintiffs incurred in pursuing the suit. A contentious, recurring question is whether D&O insurance covers fee awards to derivative litigation plaintiffs. This issue received a through going over in a February 17, 2011 opinion from a
Towers Watson Releases 2010 D&O Liability Survey Report
Great news – the survey is back. After year’s interruption, Towers Watson has resumed its annual D&O Liability Survey. The report for the 2010 survey (a copy of which can be found here) is full of valuable information about D&O insurance policyholders’ limits selection, program structure, and claims experiences, among many other things. The
Record Number of EEOC Discrimination Filings in FY 2010
According to EEOC information released on January 11, 2011, there were a record number of discrimination filings in the fiscal year that ended September 30, 2010. The number of filings approached 100,000, as economic challenges and high levels of unemployment boosted the number of filings.
The EEOC’s January 11 press release can be found