Sandusky Ruling May Spell Trouble For Other D&O Claims

Law360, New York (March 5, 2013, 10:09 PM EST) -- While roundly cheered, a judge's decision last week to deny directors and officers coverage to convicted child molester Jerry Sandusky could be used to swipe insurance from more deserving policyholders, attorneys say.

U.S. District Judge Yvette Kane told Federal Insurance Co. not to defend the former Pennsylvania State University assistant football coach against criminal and civil sexual abuse claims because Sandusky didn't commit those crimes as an employee of The Second Mile, a nonprofit for at-risk youth that Federal covered.

The judge was adamant that Sandusky's...
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