ERISA: 1st Circuit decision "troubling"
Listen up, inside counsel. Marc Mayerson blogs that a recent ruling by the 1st U.S. Circuit Court of Appeals in Federal Ins. Co. v. Raytheon Co. is "troubling" because:
"... Raytheon court's ruling means that the fiduciary-liability policies never have an obligation to respond to a follow-on ERISA case that is made in any year other than the year that the securities case is brought. In other words, unquestionably had the ERISA case been filed soon after the securities case, the fiduciary-liability carriers that year would have been required to respond. But if the ERISA case is filed the next year (or thereafter), the fiduciary-liability carriers in those years will not need to respond by dint of the generic prior-and-pending exclusion.
"So, where does this leave policyholders, which are increasingly facing tagalong ERISA claims to securities cases filed against their directors and officers (who often are benefit-plan fiduciaries)?"
Read Mayerson's thoughtful answer and context here.
Posted by Laurel Newby on October 27, 2005 at 12:47 PM | Permalink
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