D&O Insurance: Professional Liability Exclusion Precludes Coverage for D&O Claims Against Ponzi Schemer’s Bank

By | The D&O Diary | May 27, 2015
D&O Insurance: Professional Liability Exclusion Precludes Coverage for D&O Claims Against Ponzi Schemer’s Bank

In a coverage dispute arising out of the long-running Rothstein Ponzi scheme scandal, a Southern District of Florida judge, applying Florida law, has held that the professional services exclusion in the Rothstein bank’s D&O insurance policy precluded coverage for claims brought against the bank and certain of its directors and officers by the Rothstein law firm’s bankruptcy trustee.