D&O Coverage / Consumer Fraud Claims
We represent a solar electricity company in a dispute with its D&O insurer regarding coverage for consumer fraud claims. We successfully persuaded the insurer to reversed its initial coverage denial, without resort to litigation.
D&O Coverage / Foreign Prosecutions Against Officers
We represented a Fortune 500 technology company seeking D&O insurance coverage for the defense of foreign criminal prosecutions against company officers. We successfully resolved the company’s claims for reimbursement of defense costs with both the primary and excess level insurers.
D&O Coverage / Securities and Derivative Actions
We represent a major energy company seeking insurance coverage for defense costs incurred by the company and various directors and officers in securities and derivative actions, as well as state and federal regulatory investigations.
Private Company D&O Policy / Scope of Coverage Arbitration
We won an arbitration for an interactive media company regarding the scope of coverage under its private company D&O policy for a settlement of fraud claims. We successfully established that the underlying fraud claims were not “related” to an earlier set of claims, thereby entitling our client to an additional $1 million in limits.
Prosper Marketplace, Inc. v. Greenwich Ins. Co.
We recovered the costs of defending a securities class action for Prosper Marketplace, Inc. after prevailing in a bench trial. The court ruled that the insurer had breached its duty to defend and owed Prosper the $2 million policy limits. We then successfully defended the trial court’s ruling on appeal. Prosper Marketplace, Inc. v. Greenwich Ins. Co.,
S. F. Sup. Ct. Case No. CGC 09-491736; Prosper Marketplace, Inc. v. Greenwich Ins. Co
., 2012 WL 2878121 (Cal. App. 1 Dist.).
Scottsdale Ins. Co. v. Coapt Systems, Inc., et al.
We represented the directors and officers of Coapt Systems, Inc., an insolvent medical device company, in a lawsuit seeking coverage under a directors’ and officers’ policy for alleged injuries resulting from over 60 clinical trial and off-label use cases. We won a summary adjudication that the insurer had a duty to advance defense costs despite an exclusion for bodily injury claims, because the claimants also alleged fraudulent transfers by individual directors and officers. The case then settled on favorable terms. Scottsdale Ins. Co. v. Coapt Systems, Inc., et al.,
Case No. CV 12 1780-MMC (N. D. Cal.).
Securities and Derivative Actions / Public Companies
We have obtained significant insurance contributions to defense costs and settlements on behalf of numerous public companies involved in securities and derivative actions, including Finisar Corporation, Cadence Design Systems, Inc., McKesson, VeriSign, Inc. (now Symantec- VeriSign ), and McAfee, Inc.
Shareholder Derivative Litigation
In shareholder derivative litigation against Broadcom Corporation, we consulted with plaintiffs’ counsel to obtain settlement funding from the company’s D&O carriers. It was the first time in the history of U.S. shareholder derivative litigation that such claims had been settled with a substantial contribution from “Side A” D&O insurance policies.