D&O Insurance Cases to Watch in 2022
Tony Jones, a partner with Troutman Pepper, is quoted in the Law360 article, " D&O Insurance Cases to Watch in 2022."
"There's been some speculation that multiple towers of insurance and different types of carriers will have to respond" to the underlying SPAC litigation, said Tony Jones, a partner at Troutman Pepper who represents insurers.
At least three D&O policies are needed during a SPAC transaction, according to Raptis: one for the SPAC company, one for the target entity and, if the transaction goes through, there needs to be a third D&O policy to insure that, he said.
It will just be a matter of time before coverage battles over SPACs crop up, he added.
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Insurers will also look to enforce the so-called bump-up exclusion to deny coverage if the underlying investors allege they were underpaid, Jones said.