Backdating claim director face insurers officer

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The wave of litigation from the subprime mortgage meltdown is striking not just lenders and financial institutions but also professional service firms and diverse companies holding mortgage related investments.

Defendants in such litigation should be prepared to face opposition from insurers, who will likely assert a variety of coverage defenses and exclusions.

Companies can take measures, however, to maximize their chances of recovering some or all of their defense costs and potential losses from insurance carriers.

Many of these issues will likely be the same as the ones that have occurred in connection with prior types of securities litigation, including the options-backdating lawsuits and suits arising out of the savings and loan crisis.

Their resolution, however, may be different in this context. D&O and E&O policies typically exclude from coverage liability based on fraud, criminal acts, or intentional misconduct by the insureds.

Of course, given the broader economic troubles, there also has been an increase in the number of litigation matters being pursued in bankruptcy courts.

It also examines how those issues compare with those addressed in prior litigation waves, including the savings and loan scandal of the 1980s and the more recent options-backdating scandals.By continuing to use this site, you consent to the use of cookies.We use cookies to offer you a better experience, personalize content, tailor advertising, provide social media features, and better understand the use of our services.Plaintiffs asserted that those individuals had acted fraudulently and/or had obtained a personal illegal profit as a result of the backdating practices.Most policies specify that the exclusion is only triggered if the insured "in fact" committed the improper conduct or was "finally adjudicated" to have committed the improper conduct.

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