Highly Anticipated SCOTUS Ruling in SEC Disgorgement Case Could Benefit D&O Insurers

April 27, 2017

Hinshaw partner and former SEC enforcement attorney Ken Yeadon spoke to Judy Greenwald of Business Insurance regarding last week's oral argument in Charles Kokesh v. Securities and Exchange Commission, a case currently before the U.S. Supreme Court. At issue is whether the SEC is subject to a limitations period to recover funds that were deemed illegally obtained. There is a split in the Circuits on the issue, with the 10th Circuit and the 11th Circuit issuing contrary rulings.

Yeadon said that a ruling in favor of Kokesh would be beneficial to both D&O insurers and policyholders. It will give insurers "a greater understanding of what their potential exposures are with regard to the insureds" and enables them to better evaluate the risk of claims, "particularly where large sums of money are raised" or an employee is subject to some kind of finding.

Read the full article

"Expected Supreme Court SEC ruling may help predict D&O losses" was published by Business Insurance, April 25, 2017.

Hinshaw & Culbertson LLP is a U.S.-based law firm with offices nationwide. The firm's national reputation spans the insurance industry, the financial services sector, professional services, and other highly regulated industries. Hinshaw provides holistic legal solutions—from litigation and dispute resolution, and business advisory and transactional services, to regulatory compliance—for clients of all sizes. Visit www.hinshawlaw.com for more information and follow @Hinshaw on LinkedIn and X.