Page 6 - Wrongful Act News Today

To embed, copy and paste the code into your website or blog: The Delaware Supreme Court has issued two decisions over the past year that provide important guidance about directors’ and officers’ (D&O) liability insurance coverage. In RSUI Indemnity Company v. Murdock, the Supreme Court affirmed decisions holding that losses due to the fraudulent actions of an officer or director of a Delaware corporation are insurable under Delaware law. As part of its analysis, the Supreme Court conducted...

Applying Nevada law, the United States District Court for the District of Nevada has concluded that a legal malpractice policy did not apply where the insured attorneys sought coverage...

To embed, copy and paste the code into your website or blog: Applying California law, the United States Court of Appeals for the Ninth Circuit has held that a fiduciary liability policy’s Prior and Pending Proceeding Exclusion did not bar coverage for litigation concerning implementation of a settlement agreement resolving a prior lawsuit because the two actions did not “arise out of the same facts or circumstances.” In 1998, employee benefit plan members brought suit against the insured...

To embed, copy and paste the code into your website or blog: Judge Paul Wallace of the Delaware Superior Court has held that a bump-up provision did not operate to preclude coverage for a settlement of a Section 14(a) cause of action. Two defense contracting firms agreed to enter into a self-described “merger,” in which one contractor merged into a subsidiary of the second contractor. After the transaction, stockholders filed a class action, alleging violations of Sections 10(b) and 14(a...

To embed, copy and paste the code into your website or blog: In re Verizon Insurance Coverage Appeals, and this issue continues to be ripe for dispute. The Delaware Supreme Court took another look at what constitutes a “securities claim” in In re Solera Insurance Coverage Appeals, Nos. 413, 2019; 418, 2019 (Del Oct. 23, 2020), where it considered as a matter of national first impression the question of whether appraisal proceedings brought by dissatisfied shareholders in the wake of a merg...