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Frenkel & Co., Inc. Company
December 30, 2008
New York - As reported in Investment News, a survey of financial firms conducted by law firm Fulbright
& Jaworski LLP finds that half the companies expected litigation to increase in 2009. And 22% of the firms said they were preparing for subprime-related actions or investigations. Overall, the survey found that litigation defense costs are a major expense in financial service company budgets. Slightly less than half of the firms surveyed said they spend at least $1 million annually on litigation, excluding costs of judgments and settlements.
"The nature of business litigation has shifted in the past few years,'' said Owen Pell, a partner with White & Case LLP of New York.
"It has become a lot harder to frame a securities fraud case,'' he said, citing various Supreme Court decisions of the past few years. "It's also harder for plaintiffs to get class- action lawsuits certified,'' Mr. Pell added.
He said that an increase in litigation that focuses on fiduciary duties of firms is possible, in part because it is a less-developed area of law.
Hedge Fund Insurance, a division of Frenkel & Co., Inc., sells Errors & Omissions and Directors & Officers Insurance policies that provide coverage for defense costs and any judgment or settlement arising out of a claim alleging covered wrongful acts - as well as fraud protection for hedge funds and hedge fund investors. Call Mike Feinstein at (212) 488-0270 for more information on E&O/D&O and fraud protection.
