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No Wonder: Denying A D&O Claim As Excluded Loss
The Eighth Circuit’s decision in Federal Insurance offers instruction to insurance and bankruptcy practitioners alike.
February 6, 2012
Law360, New York (February 06, 2012, 1:42 PM ET) -- The first bankruptcy of the corporate entity that makes both Wonder Bread and Twinkies has an unexpected directors and officers (D&O) coverage decision filling. In United States Bank Nat'l Ass'n v. Federal Ins. Co., No. 10-3472 (8th Cir. Dec. 13, 2011), a creditor’s trust sought to recover a $56 million stipulated judgment from a D&O policy covering the bakery giant and its directors.
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