At least 10 securities class actions have been filed thus far, and that number is likely to grow, according to Jill Sulkes, a managing director in Marsh Inc.'s Financial Institutions Practice. In addition to suits targeting the growing number of mortgage originators that recently have filed for bankruptcy, she expects subprime-related claims for directors and officers liability could be made by banks, including investment banks, hedge funds, and real estate investment trusts. R. Mark Keenan, chairman of the Financial Institutions Group with New York-based policyholder firm Anderson Kill & Olick P.C, expects â€œa smorgasbord (of claims) that really is only limited to the inventiveness of plaintiffs' counsel.â€? â€œWhere I see the majority of the claims are investor claims on misrepresentations on your financial statements, or material admissions on failing to get an investor out. That could go into pensions or fiduciary liability,â€? Keenan said.
Report: Insurers Bracing for Legal Fallout of Subprime Mess
Insurers who underwrite the liability of major financial institutions are preparing for a new rash of claims, according to an report appearing in the current edition of BestWeek. A sneak peek from this morning's press summary: