E&O Coverage Barred for Options Trading Losses

In a ruling that turned on the interpretation of a technical financial term, a federal district court concluded that the Options Trading exclusion in an investment firm’s E&O policy precluded coverage for investor claims arising out of a financial transaction gone bad. In concluding that the exclusion precluded coverage, the court applied a standard financial industry definition to interpret the meaning of a specific policy term. The court’s opinion makes for interesting reading and provides food for thought about the policy placement process generally and about the process of policy interpretation. District of Utah Judge Dale Kimball’s March 1, 2019 opinion in the case can be found here.   Background Allegis Investment Services is a broker-dealer investment company and its affiliate Allegis Investment Advisors is a registered investment advisor company (collectively, “Allegis”). In August 2015, Allegis, with full discretionary authority…

Read more detail on Recent Corporate Law Department posts –

Related news:

This entry was posted in Corporate Law and tagged , , , , , . Bookmark the permalink.

Leave a Reply