Jenner & Block

Client Advisory: Court Ends Defense Costs Coverage for Allen Stanford Under D&O Policies Prior to a Final Adjudication of Civil and Criminal Liability

In this advisory, Partner Lorelie S. Masters and Associate Brian S. Scarbrough discuss the recent decision by the United States District Court for the Southern District of Texas to terminate directors and officers liability (“D&O”)insurance coverage for R. Allen Stanford and other Stanford Financial executives prior to the final adjudication of criminal and civil  liability.  The authors caution policyholders that this decision demonstrates the importance of negotiating for the narrowest exclusionary wording in D&O insurance policies.