2nd Circ. Ruling May Broaden Common D&O Policy Exclusion

A recurring directors and officers insurance issue is the question of whether or not coverage for a particular claim is precluded under the relevant policy’s professional services exclusion. A recent decision by the Second Circuit addressed questions concerning the applicability of a professional services exclusion in a D&O insurance coverage dispute arising out of the mistake-plagued Facebook initial public offering. In a Jan. 22, 2018, opinion, the appellate court affirmed the district court’s ruling that coverage for the settlement of the investor claims against Nasdaq related to the...

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