News & Analysis as of

Fraud Professional Liability

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Lowenstein Sandler LLP

Fake It till You Break It: Insurance Coverage Implications for ChatGPT Mishaps

ChatGPT, an Artificial Intelligence (AI) chatbot created by OpenAI, has taken the legal world by storm since it first launched in November 2022. The chatbot gained notoriety for its cutting-edge ability to answer questions...more

Wiley Rein LLP

Insured Cannot Bring Bad Faith Allegation When Coverage “Fairly Debatable”

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The United States District Court for Minnesota, applying Minnesota law, has affirmed a magistrate judge’s decision denying an insured’s motion to amend its complaint to add a claim for bad faith....more

Lowenstein Sandler LLP

Fintech Company Secures Indemnity Coverage Under Professional Liability Policy for Fraudulent Funds Transfer Claim

Lowenstein Sandler LLP on

What You Need To Know: - Recent case law is trending favorably for policyholders to secure coverage for computer fraud claims under a wide array of insurance policies. - Because several types of policies may be...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - January 2016

Despite Finding Policy Application Misrepresentation, Jury Rules Against Policy Rescission - Why it matters: A federal jury concluded that Starr Surplus Lines Insurance Company did not have a valid basis to rescind the...more

Bilzin Sumberg

A Shift in Liability for Credit Card Fraud

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For too long, “swiping” a credit card has had at least one meaning too many. There was “swiping” as it pertains to running the magnetic strip of your credit card inside the groove of a small payment terminal to make an...more

BakerHostetler

EMV Liability Shift Update – What Liability Actually Shifts?

BakerHostetler on

With the October 1, 2015 liability shift deadline looming, merchants who have not yet made the change continue to evaluate the cost of accepting EMV cards versus the liability that will shift from the issuer to the merchant...more

Proskauer - Insurance Recovery & Counseling

Policyholder Warning: What One Provision Giveth (Defense Costs), Another Provision May Taketh Away

Professional liability insurance policyholders often breathe a sigh of relief when their insurer begins funding the costs of defending against a civil claim or government investigation. That is one of the reasons they bought...more

Cozen O'Connor

Third Circuit Upholds Defense Cost Reimbursement Clause in Professional Liability Policy

Cozen O'Connor on

On October 10, 2014, the 3rd Circuit Court of Appeals decided Camico Mutual Ins. Co. v. Heffler, Radetich & Saitta, LLP, where it enforced a policy clause providing for repayment to the insurer of defense costs, and confirmed...more

Proskauer - Insurance Recovery & Counseling

“Prior or Pending Litigation” Exclusion Bars Coverage for Litigation that Was Unknown to Policyholder

Companies that do business with the federal government, or whose business transactions otherwise involve payments by the government, undoubtedly understand the exposure they face to “whistleblower” or “Qui Tam” lawsuits...more

Dorsey & Whitney LLP

CEO, CFO Charged in SEC Financial Fraud Action

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Since the formation of the financial task force, and its related data group, there has been speculation regarding the focus of the new program and the impact of big data techniques. One indication of how the program could...more

Allen Matkins

This Court’s Ruling Puts The Opinion In Auditor’s Internal Control Opinion

Allen Matkins on

A brief ruling issued this week by U.S. District Court Judge James C. Mahan makes it clear that an auditor isn’t always liable even when a subsequent auditor uncovers fraud. In Oaktree Capital Mgmt., L.P. v. KPMG, 2014 U.S....more

Dorsey & Whitney LLP

BAC CEO Pays $10 Million Plus D&O Bar To Settle NYAG Market Crisis Case

Dorsey & Whitney LLP on

Former Bank of America CEO Kenneth Lewis agreed to pay $10 million and to be barred from serving as an officer or director of a public company for three years to settle fraud charges brought by the New York Attorney General...more

K&L Gates LLP

New York Trial Court Holds that Administrative Orders Do Not Constitute "Final Adjudications"

K&L Gates LLP on

New York Trial Court Holds that Administrative Orders Do Not Constitute “Final Adjudications” For Purposes of Applying Fraud/Dishonesty Exclusion in Professional Liability Policy - A recent New York trial court...more

Katten Muchin Rosenman LLP

US Court of Appeals for the Eleventh Circuit Upholds Fraud Penalties for Ex-GlobeTel Executives

The US Court of Appeals for the Eleventh Circuit recently upheld a summary judgment decision granted in favor of the US Securities and Exchange Commission against three former GlobeTel Communications Corp. (GlobeTel)...more

Dorsey & Whitney LLP

SEC Names Company, Eight Directors and Officers In Financial Fraud Actions

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Since the market crisis enforcement officials have heard repeated calls to prosecute not just companies but high ranking corporate officials. While the Commission brought a series of market crisis actions against firms and...more

Cozen O'Connor

PA Court Holds Coverage is Barred Under Professional Liability Policy for False Claim Act Lawsuit Costs

Cozen O'Connor on

On July 16, 2013, the Pennsylvania Court of Common Pleas (Philadelphia County) granted summary judgment in favor of ACE American Insurance Company, holding that costs arising from False Claims Act Litigation were excluded...more

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