SEC Investigation Does Not Trigger Coverage For $3M In Legal Costs, Panel Affirms

Mealey's (October 18, 2017, 11:10 AM EDT) -- DENVER — The 10th Circuit U.S. Court of Appeals on Oct. 17 affirmed a lower federal court’s entry of summary judgment in favor of an insurer, rejecting the insured’s argument that an investigation by the U.S. Securities and Exchange Commission is a claim under its directors and officers liability policy that warrants coverage for all of its $3 million in legal fees (MusclePharm Corporation v. Liberty Insurance Underwriters, Inc., No. 16-1462, 10th Cir., 2017 U.S. App. LEXIS 20233)....