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Expert Analysis

Dissecting 2nd Circ.'s MBIA Ruling

Law360, New York (August 9, 2011, 12:06 PM EDT) -- In its July 1, 2011, opinion iin MBIA Inc. v. Federal Ins. Co. and ACE American Ins. Co., 10-0355-cv (Second Cir. July 1, 2011), the U.S. Court of Appeals for the Second Circuit rejected Insurers Federal Insurance Company's and ACE American Insurance Company's (collectively, the insurers) appeals seeking to reverse a finding of coverage for (1) expenses associated with federal and state government investigations into the insured's accounting practices, and (2) a special litigation committee formed to investigate the shareholder derivative suits that followed the agency scrutiny....

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