· Representation of a D&O insurer in connection with a $100+ million discovery sanction against the named corporation, which resulted in shareholder lawsuits against the corporation's directors and officers.
· Representation of a major, industry-wide captive insurer with respect to coverage issues and disputes arising under its excess liability and D&O policies, and all "mini-trials" and arbitrations resulting from those coverage disputes.
· Representation of a D&O insurer with respect to matters pertaining to approximately 260 civil lawsuits, numerous government investigations and administrative proceedings, and a number of criminal proceedings, and ensuing coverage litigation. Civil lawsuits include consolidated federal securities class actions alleging a series of materially false and misleading statements about Enron's business, prospects, and operations. Involved claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated by the Securities and Exchange Commission. A settlement has been presented to the court, and is presently awaiting court approval.
· Representation of a D&O insurer in the defense and settlement of six consolidated federal securities class actions arising out of an allegedly failed investment strategy. Involved claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated by the Securities and Exchange Commission. Litigation was settled for $140M, with insurers' participation limited to 50%.
· Representation of a D&O insurer in the defense and settlement of seven consolidated federal securities class actions, and the consolidated shareholder derivative action (In re NorthWestern Corporation Derivative Litigation, Case No. CIV-03-4091), all pending in the United States District Court for the District of South Dakota. The federal securities complaint alleged breaches of §10(b) of the Securities Exchange Act and SEC Rule 10b-5 based on alleged material misstatements and omissions in public financial reports and failure to disclose problems with its information technology infrastructure, leading to an $880M restatement. The cases were settled for $41M, with portions of the settlement paid by the underwriters and the accountants, in addition to a $37M payment by the D&O insurers.
· Representation of a D&O insurer in the defense and settlement of multiple federal court shareholder and bondholder class actions alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and §§11, 12(a)(2) and 15 of the Securities Act of 1933 based on restatement of the company's financials in 2002 and Q1 2003, operational problems at a nuclear plant and blackout issues associated with problems with its transmission lines. The claims were globally settled for $89.9M, with the company paying 20% of the settlement and agreeing to compromise over $10M in defense costs for $1.25M.
· Representation of an excess D&O insurer in the defense and settlement of related federal securities, derivative and fiduciary litigation arising out of the company's failure to disclose material information relating to alleged "round-trip trading" activities and the existence of cross-default provisions in its credit agreements by which the company would be adversely impacted by a credit default on the part of a wholly owned subsidiary. Although the litigation was settled for $80M, we negotiated on behalf of the excess D&O insurer a policy "buy-out" that resolved all D&O and fiduciary coverage under the applicable combined limits policy for a fraction of the total limits.