Limitations On Liability Coverage Under Section 11

Law360, New York (September 8, 2008, 12:00 AM EDT) -- Several recent decisions, including a decision just last week by the United States Court of Appeals for the Eleventh Circuit, have held that a payment by an issuer to resolve liability under Section 11 of the Securities Act of 1933 is not a “loss” insured under a liability insurance policy.

Section 11 of the Securities Act of 1933 imposes liability for any misleading statement or omission of a material fact in a registration statement for a public offering of securities. Courts characterize Section 11 as imposing...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.