D&O insurance, more than any other kind of insurance, comes into play in make or break the company situations. D&O insurance is designed to respond to the worst case kinds of scenarios, such as when a corporation is sued in multiple lawsuits and is addressing a series of governmental investigations. In these kinds of situations, D&O insurance is a vital part of the solution.
In today’s video blog post, Mark Miller describes an example of a recent case in which Miller Friel successfully recovered for a technology company saddled with a series of lawsuits and governmental investigations at the very time they contemplated going public. There, insurance recovery was part of the solution to the problem, that enabled the company to go forward with its IPO plans.
The reason we practice in the area of insurance recovery law is to help businesses recover what they are entitled to from their insurance carriers. This is just one example of how our particular expertise in D&O insurance has enabled us to achieve great results for our clients. Please watch the video to learn more.
Below is a transcript of the video:
D&O insurance can make or break a company.
D&O insurance usually comes up and make or break the company situation. The company is in serious dire straits. They’ve been sued by 10 or 15 lawsuits, have government investigations and if any of these are successful the company is gone, shut down. So it’s truly make or break the company litigation. So our role is not defending the company. They have other counsel to do that. Our role is to work insurance into the solution and by doing that is getting money to pay for the lawyers, the defense. And to get money to pay for the settlements.
So one example is we have a technology company on the verge of going public. 15 lawsuits filed against them, class-action lawsuits, governmental investigations for at least two or three agencies. They were ready to go public, now they have to delay their plans. So we come in and we work with defense counsel’s to make sure nothing is done improperly as far as preserving the claims. All of the claims are settled. All the insurance carriers have denied coverage. And at that point once the claims are settled, we go after the insurance companies and here we did it in mediation. There were sensitive issues. Sometimes you don’t want to be in litigation, you want to be behind closed doors in mediation. And for a company who is going public it was important. We should do it in mediation.
So the bottom line is we systematically knocked off layers of coverage, $5 million $10 million at a time, getting to the upper layers. And we delivered to the client on all those layers and then two or three years later, we are talking to the client and she was very very happy. And she said you know what we did with that money that year? And we said what money? All the money that you guys brought in and she said, that was great, to bring in all of that money, millions and millions. And I said, no, what did you do with it? And she said that was our holiday bonus, every single person in the company got a lot of money because of what you guys did. So we felt pretty good about it.
So if you have an issue and you’re questioning whether there’s coverage or not and you’re questioning whether the policy is right to begin with, give us a call and we’ll be happy to take a look at it.