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Risk and Recovery: Legal Insights for the Insured

Category Archives: Directors and Officers Liability

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Protecting Directors and Officers From Derivative Liability Arising From Data Breaches

Posted in Directors and Officers Liability

With data breaches affecting companies across virtually every industry, cyber security has remained front page news. Lawsuits brought by aggrieved consumers and financial institutions against companies that have suffered data breaches are not uncommon. Increasingly, companies are also being subjected to shareholder derivative suits against directors and officers alleging breach of fiduciary duty relating to… Continue Reading

Mind Your Ds and Os: Policy Language Proves Determinative in Director and Officer Insurance Coverage

Posted in Directors and Officers Liability

A recent pair of opinions from New York and Pennsylvania shows the importance of evaluating all parts of director and officer (D&O) insurance coverage, down to each definition.  These cases, one holding for the insured and one for the insurer, demonstrate that a policy’s terms can be absolutely critical if the insured seeks indemnification for… Continue Reading

First Circuit Orders AIG To Advance Defense Costs In FDIC Suit Because Of “Likelihood Of A Remote Possibility Of Coverage”

Posted in Directors and Officers Liability

On March 31, 2014, the First Circuit reaffirmed the breadth of an insurer’s duty to defend. In W Holding Co., Inc. v. AIG Ins. Co.-Puerto Rico, No. 12–2008, 2014 WL 1280246 (1st Cir. Mar. 31, 2014), the appellate court ruled that AIG Insurance Company (“AIG”) must advance defense costs to former directors and officers of… Continue Reading