Malpractice Insurer Not Required to Defend Valuation Firm for Claim Alleging Securities Fraud

BVLaw
Court Case Digests
August 23, 2021
6399 Insurance Carriers, NEC
524298 All Other Insurance Related Activities
ESOP valuations
securities law violations, stock, insurance, indemnification/contribution

Great Am. Fid. Ins. Co. v. Stout Risius Ross, Inc.
2021 U.S. Dist. LEXIS 158553; 2021 WL 3772876
US
Federal Court
Michigan
United States District Court
Michelson, Whalen

Summary

This case featured a motion to dismiss a claim from an insured that the plaintiff, Great American, was required to defend the defendant, Stout, against a claim by ESOP plaintiffs that Stout committed “federal securities fraud.” While the Great American policy covered valuation services, the policy also featured an exclusion for claims against the insured for securities violations.

See Also

Great Am. Fid. Ins. Co. v. Stout Risius Ross, Inc.

This case featured a motion to dismiss a claim from an insured that the plaintiff, Great American, was required to defend the defendant, Stout, against a claim by ESOP plaintiffs that Stout committed “federal securities fraud.” While the Great American policy covered valuation services, the policy also featured an exclusion for claims against the insured for securities violations.