D&O Insurance: Court Rejects Insurers’ Argument That Coverage for a DOJ Subpoena is Precluded

As I have noted in numerous prior posts, the question of whether or not a D&O insurance policy provides coverage for a subpoena is a recurring issue. A recent decision out of the Northern District of Illinois denied the relevant D&O insurers’ motion to dismiss a declaratory judgment action in which a policyholder sought coverage for its costs incurred of responding to a DOJ subpoena. The decision is interesting in a number of respects, including in particular the court’s willingness to consider all of the circumstances in concluding that the policy’s Wrongful Act requirement had been met. Northern District of Illinois Judge Manish S. Shah’s May 30, 2018 decision in the case can be found here.   Background Astellas Pharma U.S. is a pharmaceutical company and the U.S-based subsidiary of Astellas Pharma, Inc. In March 2016, Astellas received a subpoena in connection with the U.S. Department of Justice’s investigation of…

Read more detail on Recent Corporate Law Department posts –

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

Leave a Reply