Retention of Profits May Impact Insurance Coverage for Disgorgement Payments to the SEC

June 13, 2013

In an opinion by Judge Graffeo, the New York State Court of Appeals unanimously reversed the dismissal of an insured’s coverage claims relating to monetary payments made by Bear Stearns & Co. Inc. (“Bear Stearns”) to the United States Securities and Exchange Commission (“SEC”) in connection with the settlement of claimed violations of the federal securities laws.

CGR Memo - Retention of Profits May Impact Insurance Coverage for Disgorgement Payments to the SEC