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Disclosure Suits Reined In For Omissions Claims – Tae Andrews Discusses Supreme Court’s Coverage Ruling with Law360

Jun. 20, 2024

The U.S. Supreme Court embraced an insurance-packed docket in its current term, tackling thorny coverage issues in decisions whose impact will be felt by insurers and policyholders across the industry. In an interview with Law360, Counsel Tae Andrews discussed the high court’s decision in Macquarie Infrastructure Corp. et al. v. Moab Partners LP et al. which ruled that a company’s investors could not lodge a private securities fraud suit solely on the basis of an omission about future business risks that lacked an affirmative, misleading statement. 

“Wrongful acts like alleged misstatements or omissions generally fall under similar language across D&O policies, but the devil is in the details,” Andrews said. “These kinds of disputes are often fought in the trenches, and what I mean is they absolutely distill down to very granular statements, very specific items, and then also very specific policy language.”

The justices’ decision shielded companies from a potential monsoon of shareholder claims that would implicate D&O coverage. 

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Tae Andrews
Counsel
Named a Rising Star by Super Lawyers in 2022

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