D&O Insurance Experts On Goldman Sachs

BusinessInsurance.com writes: “The SEC alleges in a complaint filed April 16 that Goldman made material misstatements and omissions in connection with a synthetic collateralized debt obligation linked to subprime mortgages and that it did not disclose to investors that it had received a Wells notice from the SEC. A Wells notice is an SEC letter stating it intends to begin enforcement proceedings.”

In addition to Goldman, the SEC’s complaint names Fabrice Tourre, an executive director of Goldman Sachs International.  Tapping Goldman’s D&O coverage for any securities litigation that could potentially ensue after the bank’s stock dived when the SEC’s allegations were revealed would depend on whether claims are considered “non-indemnifiable,” meaning the company cannot or will not provide a defense or indemnify individuals for a lawsuit settlement, D&O insurance experts said.

For more, see businessinsurance.com.

About Karen Olson

Information Professional with twenty years experience in legal, public record, and business research. Fifteen years law firm experience.

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