Insurance Law
Stanford’s D&O Coverage Can Pay for Private Counsel in $7B Case, Judge Rules
Posted Oct 9, 2009, 04:26 pm CST
By Martha Neil
it looks like Texas billionaire R. Allen Stanford may soon have a private lawyer again. After his assets were frozen, he couldn't afford to pay legal counsel and had to get a public defender.
But today U.S. District Judge David Godbey, who sits in Dallas, said he and other executives of the Stanford Group may turn to a Lloyd's of London policy of insurance for directors and officers of the company, reports Bloomberg.
If not permitted to do so, the judge notes, the executives may be forced to defend themselves in civil litigation without any counsel at all, since public defenders are only available in criminal cases.
The Lloyd's policy is believed to offer at least $50 million of coverage, according to Bloomberg.
Additional and related news:
ABAJournal.com: "DeGuerin Out, Patton Boggs In as Stanford’s Defense Counsel in $7B Case"
Reuters: "US judge allows Stanford, others to seek defense fees"