Posted by Bradley J. Nash, Litigation Partner
On March 26, 2020, the New York Court of Appeals granted leave to appeal from the First Department’s decision in J.P. Morgan Sec., Inc. v. Vigilant Ins. Co.,126 A.D.3d 76 (1st Dep’t 2018), which held that that a disgorgement payment made as part of the settlement of an SEC enforcement action was a “penalty” and therefore did not qualify as a covered “loss” under a CGL policy.
This case has a long history. See our post about the First Department’s decision here. And see posts on the Commercial Division Blog about earlier phases of the litigation here, here, here, here, and here.