Law360, New York (January 28, 2010, 2:30 PM EST) -- On Dec. 30, 2009, the United States District Court for the Southern District of New York in MBIA Inc. v. Federal Ins. Co. et al., Civ. No. 08cv4313 (S.D.N.Y. Dec. 30, 2009), held that, in certain instances, legal costs incurred by a special litigation committee in connection with a shareholder derivative litigation may be covered under a D&O policy.
There are several significant implications of the MBIA decision, which are discussed in detail below.
Coverage for Special Litigation Committee Investigations