Insurers of directors backdating claims face

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In order to appreciate the extent of the coverage limitation that the antitrust exclusion represents, it is important to appreciate that the antitrust exclusion precludes coverage for a lot more than just antitrust claims.As discussed at length here, the exclusion may be referred to simply as the antitrust exclusion, but it also precludes coverage for restraint of trade, unfair or deceptive trade practices, and unfair competition.

insurers of directors backdating claims face-64

If approved by Los Angeles federal district court judge Manuel Real, it would be the second-largest backdating settlement for a derivative suit (behind United Healthcare), and one of the biggest derivative settlements ever, according to Kevin La Croix of The D & O Diary"[The insurers] disputed whether they owed anything," he said.Before the settlement, the insurers had paid just .3 million of the more than 0 million sought by Broadcom.This concern could be particularly apparent in the bankruptcy context, where creditors and others may seek to impose liability on the company’s executives, at the very time when the company itself is unable to indemnify them and to help with their legal expenses.In these circumstances, D&O insurance can represent the individuals’ last line of defense.

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