As reported in The 10b-5 Daily, Cutter & Buck, Inc. entered into a settlement of the securities class action against the company last June. The settlement was for $4 million, plus an additional $3 million to come from any recovery of funds from its ongoing suit against Genesis Insurance over the recission of its D&O policy.
That part of the recovery is looking unlikely. U.S. District Judge Marsha Pechman of the W.D. of Wash. recently rejected Cutter & Buck's attempt reinstate the policy. According to an article in the Seattle Times, the court found "Genesis was within its rights to rescind the policy because Cutter & Buck 'made material misrepresentations with an intent to deceive.'"
For more on the potential recission of D&O policies (including some material on the Cutter & Buck suit), AIG/National Union has a recent briefing paper on its website that includes the topic.Posted by Lyle Roberts at February 23, 2004 7:13 PM | TrackBack