To embed, copy and paste the code into your website or blog: Applying New York law, the United States District Court for the Southern District of New York has held that an SEC investigation of the insured company did not constitute a “Securities Claim,” where the term expressly excluded investigations. Hertz Global Holdings, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, 2021 WL 1198802 (S.D.N.Y. Mar. 30, 2021). The court likewise held that the investigation did not constitute a “Claim” against Insured Persons, notwithstanding cooperation of former executives in the investigation. In 2013, a securities class action was filed against the insured car rental company. The next year, the company received an SEC Formal Order of Investigation providing that the SEC had “information that tends to show” securities law violations. The company noticed the class action and investigation under a policy that afforded coverage for “Securities Claims” against the company and “Claims” against Insured Persons. The policy defined “Securities Claim” as “a Claim, other than an investigation of an Organization . . . alleging” securities law violations. The insurer accepted the class action as a “Securities Claim” and denied coverage for the investigation. The company filed suit alleging breach of contract.