New York Court Of Appeals Rules That $140 Million Disgorgement Payment To SEC Is Not An Uninsurable ‘Penalty’

On Nov. 23, the New York Court of Appeals held in a 6-1 ruling that an investment firm’s $140 million disgorgement payment to the Securities and Exchange Commission (SEC) was not a “penalt[y] imposed by law” under the firm’s wrongful act insurance policies, and thus was not necessarily excluded from coverage.1In 2006, Bear, Stearns & Co. and Bear, Stearns Securities Corporation made a $160 million disgorgement payment to settle charges that they had facilitated […]

By | December 9th, 2021 ||

Court Of Appeal Defines Standard Of Review For PAGA Settlements

On November 30, 2021, the California Court of Appeal (First District) issued its decision in Moniz v. Adecco USA, Inc., Case No. A159410, 2021 WL 5578298, which defines the standard for courts to apply when reviewing settlements under the Private Attorneys General Act (PAGA). In a published decision, the Court of Appeal held that the trial court must ensure that the settlement is “fair, reasonable, and adequate in view of PAGA’s purposes to remediate present […]

By | December 9th, 2021 ||

Appeals Court Affirms FCC’s Rule Repeal In Fax Marketing Decision

While traditional fax machines are less and less common today, litigation over fax marketing remains as rampant as ever. The Telephone Consumer Protection Act (“TCPA”) governs fax marketing and tasks the Federal Communications Commission (“FCC”) with creating rules for telemarketers to follow. One such rule required telemarketers to include detailed opt-out instructions on every  fax, including solicited faxes (the “Solicited Fax Rule”). The FCC eventually repealed the Solicited Fax Rule after a federal appeals court found […]

By | December 9th, 2021 ||