Gateway Wins D&O Coverage Fight With Travelers

Law360, New York (August 17, 2011, 2:13 PM ET) -- Gateway Inc. on Monday won its bid in California for coverage from Travelers Indemnity Co. for attorneys’ fees incurred on behalf of Gateway employees in a securities suit against the company, even though the employees were not explicitly included in a directors and officers policy.

U.S. District Judge William Q. Hayes said that because the nonexecutive Gateway employees appeared as deposed witnesses in a securities fraud suit against company officers covered by the D&O policy, Travelers is obligated to pay those employees' legal fees.

Any potential...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers