Federal Insurance Not Liable For $25M SafeNet Settlement

Law360, New York (September 12, 2011, 1:36 PM EDT) -- A New York federal judge on Friday found that Federal Insurance Co. is not responsible for covering any of the $25 million settlement that data protection company SafeNet Inc. paid to a class of shareholders over false financial statements made by the company's former chief financial officer.

The insurer is off the hook for the settlement because SafeNet did not notify Federal or seek its consent to pay the settlement, U.S. District Judge Naomi Reice Buchwald found.

The judge also found that the policy at issue,...
To view the full article, register now.