By Monday morning of this week, two banks had failed in quick sequence, including the very high-profile collapse last week of Silicon Valley Bank (SVB) and the closure over the weekend of Signature Bank. SVB got hit with a securities class action lawsuit yesterday, so what had to happen next? Why, a securities suit against Signature Bank, of course. On Tuesday morning, the same plaintiffs’ law firm that sued SVB on Monday filed a separate securities class action lawsuit against Signature Bank and three of its executives. How much further any of this goes from here is the question on everyone’s minds. A copy of the Signature Bank complaint can be found here.Continue Reading SVB Got Sued, So, What Next? A Suit Against Signature Bank, Of Course
An issue that frequently comes up when companies are in bankruptcy or in other forms of receivership is whether the companies’ D&O insurer can advance payment of individuals’ defense costs over the receiver’s objections. In a recent case, a Northern District of Texas judge has ruled that the individual defendants in an SEC enforcement action are entitled to have their defense expenses advanced notwithstanding the asset stay in the proceeding and despite the receiver’s objections. However the policy’s limits of liability are all but exhausted, which raises its own set of issues, as discussed below. Northern District of Texas Judge Sydney Fitzwater’s June 6, 2018 opinion in the case can be found here.
Continue Reading D&O Insurance: Company in Receivership, Insurer Can Advance Defense Expense, But Limits Exhausted?