Calpine Asks Insurers To Cover Employee Defense Costs

Law360, New York (February 21, 2006, 12:00 AM EST) -- Looking to alleviate defense costs for several employees mired in class action securities litigation, bankrupt power company Calpine has asked a bankruptcy court judge to allow the company’s insurers to cover the litigation expenses so employees can focus on turning around the ailing company.

Calpine said that without financial help from the insurers, directors, officers and employees named in class action lawsuits would have to fund the litigation themselves, which would divert their attention from helping Calpine emerge from bankruptcy.

If granted by the bankruptcy court,...
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