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Delaware Superior Court Holds That SEC Disgorgement Is Not Excluded As A Penalty Nor Uninsurable As A Matter Of Law
The Delaware Superior Court recently issued a significant ruling on insurance coverage for SEC disgorgement, determining that such payments are neither automatically excluded as civil penalties nor categorically uninsurable under Delaware law. This decision has important implications for directors and officers liability insurance policies and the scope of coverage available for regulatory enforcement actions. The court's analysis focused on specific policy language and established legal principles governing
McDermott Will & Schulte