Panel: No Directors, Officers Coverage Owed For SEC Notices, Enforcement Action

Mealey's (April 2, 2020, 4:08 PM EDT) -- HOUSTON — A Texas appeals panel on March 31 held that an insured’s losses associated with the U.S. Securities and Exchange Commission’s notices and enforcement action are subject to a directors and officers liability insurer’s “Interrelated Claims” condition and, therefore, do not fall under the scope of coverage, affirming a lower court’s ruling in favor of the insurer (Uni-Pixel, Inc., et al. v. XL Specialty Insurance Company, No. 14-18-00828, Texas App., 14th Dist., 2020 Tex. App. LEXIS 2646)....