N.Y. Majority Reverses Ruling In Coverage Dispute Over Bear Stearns’ Settlement

(November 29, 2021, 2:37 PM EST) -- ALBANY, N.Y. — A majority of the New York Court of Appeals on Nov. 23 reversed an appeals court’s ruling in favor of insurers in a lawsuit seeking indemnification for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that it facilitated customers' deceptive market timing and late trading activities, finding that the settlement payment was not excluded from coverage as a “penalt[y] imposed by law” under the insurance policies....