Ace Told to Cover NASDAQ's Facebook IPO Defense Costs
Orange County partners Kevin Kieffer and Ryan Tuley, New York partner Matt Aaronson and Orange County associate Dustin Thai were mentioned in an October 22 Law360 article about a U.S. district court judge granting Beazley Insurance Company, Inc.’s motion for partial summary judgment. The court ruled that ACE American Insurance Co. could not rely on a professional services exclusion in the directors and officers policy ACE issued to NASDAQ OMX Group Inc. to avoid providing a defense to NASDAQ and its officers in connection with an underlying class action.
The class action had been brought on behalf of retail investors of FaceBook stock during the FaceBook IPO offered by NASDAQ. Beazley argued that ACE could not show that all class members in the underlying class action were “customers” or “clients” of NASDAQ, as required by the professional services exclusion. The court agreed, finding that retail investors did not qualify as NASDAQ’s “customers” or “clients.” NASDAQ is also insured by Beazley under an errors and omissions policy.
The firm’s quartet is representing Beazley in the ongoing legal proceedings.