As the 2019 hurricane season peaks, the Bahamas and the Southeast United States have already endured a catastrophic storm. Hurricane Dorian not only tragically caused loss of life and substantial property damage, but it also led to the cancellation or postponement of major events, resulting in considerable economic losses for affected companies.
Continue Reading

Real estate investment trust VERIET, Inc. (formerly known as American Realty Capital Properties) announced this week that it agreed to a $765.5 million settlement to resolve shareholder class action and related lawsuits arising from a host of alleged securities violations and accounting fraud at ARCP since the company went public in 2011. Defendants in the class action settlement have agreed to pay more than $1 billion in compensation, including millions from ARCP’s former manager and principals, chief financial officer, and former auditor.

Continue Reading

In an insurance coverage action pending in the S.D.N.Y., Hunt Construction Group (Hunt) contends that Berkley Assurance Company wrongfully denied defense coverage for claims arising out of the renovation of Hard Rock Stadium (home to the Miami Dolphins and Miami Hurricanes football teams).

Continue Reading

In a recent Law360 expert analysis, titled “Considering Disclosure Risks In Sensitive Product Recalls,” Hunton Andrews Kurth insurance lawyers Syed S. Ahmad and Geoffrey B. Fehling discuss the disclosure risks companies face in pursuing insurance coverage for losses arising from product recalls that involve potentially sensitive communications with the Food and Drug Administration

In a recent article in the ABA Business Law Section publication Business Law Today, Hunton insurance recovery lawyers Syed Ahmad and Geoffrey Fehling discuss several important D&O insurance coverage issues to consider in M&A transactions. In the article, the authors discuss the intersection of M&A and insurance and how mergers, acquisitions, and other deals

Increasing public concern over sexual misconduct, evidenced by the #MeToo movement and investigations into high-profile organizations such as USA Gymnastics, the Boy Scouts of America, various religious institutions, and the entertainment industry, has led to the enactment of laws that may have a major impact on the coverage litigation world. This year, eighteen states and the District of Columbia will enact laws modifying the statute of limitations for child sexual abuse cases, allowing victims to bring claims that otherwise would have been time-barred.

Continue Reading

Equifax Inc. recently announced that it has agreed to pay up to $700 million to settle numerous government investigations and consumer claims arising out of a 2017 breach that exposed Social Security numbers, addresses and other personal data belonging to over 148 million individuals. Following the breach, Equifax faced investigations from the Federal Trade Commission, the Consumer Financial Protection Bureau, all 50 state attorneys general and consumers prosecuting nationwide multidistrict litigation. As part of the deal, Equifax will contribute approximately $300 million to compensate consumers, with the potential to increase to $425 million depending on the number of claims filed. Equifax also agreed to pay $175 million to state governments, plus another $100 million in civil penalties to the CFPB.
Continue Reading

The United States District Court for the Southern District of Texas recently rejected a claim by a group of insurance companies (“Underwriters”) against American Global Maritime Inc. for more than $500 million that the Underwriters paid the named insured under an Off-Shore Construction Risk insurance policy for losses resulting from the an alleged off-shore oil rig failure.

Continue Reading

A state-appointed panel advised last week that California should change the standard for determining whether utilities are liable for wildfires.  Under the current system, California’s Public Utilities Code § 2106 provides a private right of action by any person or entity that has suffered loss, damages, or injury caused by prohibited or unlawful acts of a public utility.  Relying on this statute, property owners have asserted wildfire-related claims directly against allegedly culpable electric utility companies.  Public utilities in California also face inverse condemnation claims arising out of wildfires.  Under inverse condemnation, where private property is taken for public use and later damaged by the state or its agency, the state or agency is strictly liable to the property owner.

Continue Reading