Archives: Directors & Officers

Subscribe to Directors & Officers RSS Feed

Ninth Circuit Finds No Coverage for TCPA Claim Under D&O Policy Per Privacy Exclusion

On August 23, the Ninth Circuit Court of Appeals affirmed a decision by Judge Dolly M. Gee of the United States District Court for the Central District of California holding that the Los Angeles Lakers were not entitled to insurance coverage under their D&O Policy for a class action alleging the team sent unsolicited text … Continue Reading

As Trump Declares “We Are Out” of the Paris Accord, Investors Demand More Climate Change Risk Disclosure from Within

Investors from around the world have spoken. For the first time in history, they have publicly demanded more transparent and complete corporate financial risk disclosures related to climate change. While climate change risk disclosures are nothing new, the current position of many investors on the issue surely is. Some of the world’s largest asset management … Continue Reading

CFPB Issues New Arbitration Rule – Are the Flood Gates Opening for Consumer Class Actions against Financial Institutions?

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a rule (full text here), which prohibits many financial institutions from including mandatory arbitration provisions that limit their customers’ ability to join class action litigation. The rule, which may become effective as early as 2018 and only applies to new accounts opened after the … Continue Reading

No Coverage for Multi-Million Dollar False Claims Act Settlement Due to Insured’s Failure to Provide Sufficient Details in Notice to Insurers

On June 23, 2017, Judge Lipman ruled in First Horizon National Corp., et al. v. Houston Casualty Co., United States District Court for the Western District of Tennessee Case No. 2:15-cv-2235 that First Tennessee Bank’s (Bank) primary insurer, Houston Casualty Company, and seven excess insurers did not have to pay their combined $75 million limits … Continue Reading

UK Conservative Party Pledges to Abolish Serious Fraud Office if Re-elected on 8 June 2017

In my C-Suite Risk Report posting in March, I discussed the UK’s Serious Fraud Office’s (SFO) investigation into Rolls-Royce (RR) and the UK Court’s approval of a Deferred Prosecution Agreement (DPA). As a result of that DPA, RR avoided prosecution, but paid £671m (approximately US $800m) to UK, US and Brazilian authorities in order to … Continue Reading

False Claims Act Litigation and Implications for D&O and Professional Liability Insurers

Sedgwick attorneys Matthew Ferguson (NY) and Kimberly Forrester (SF) have published an article on the Federal False Claims Act (FCA) and its implications for D&O and professional liability insurers. The full article can be viewed here. Among the issues discussed are the background and elements of the FCA and certain recent developments, including the increase … Continue Reading

Strike Three – You’re Out – Data Breach Shareholder Derivative Lawsuit Against Home Depot Dismissed

On November 30, 2016, Judge Thomas W. Thrash dismissed a shareholder derivative action brought against Home Depot as a result of the breach of its security systems and theft of its customers’ personal financial data (“the Breach”) in 2014. In Re The Home Depot, Inc. Shareholder Derivative Litigation, Civ. No. 1:15-CV-2999, 2016 WL 6995676 (N.D. … Continue Reading

Every Rose Has Its Thorn: No D&O Coverage For Bad Loans To Flower Company, Fifth Circuit Says

In a recent decision, the Fifth Circuit ruled in favor of Markel American Insurance Company in a D&O liability coverage dispute centering on the application of the policy’s “Creditor Exclusion.” The panel affirmed a lower court’s holding that the exclusion precluded coverage for claims brought by lenders of the insured. Markel Am. Ins. Co. v. … Continue Reading
LexBlog