Defendants Unable to Establish Absence of Price Impact, Class Certification Granted

By | The D&O Diary | October 3, 2014
Defendants Unable to Establish Absence of Price Impact, Class Certification Granted

In its long-awaited June 2014 decision in the Halliburton case, the U.S. Supreme Court declined to jettison the fraud on the market theory on which the presumption of reliance is based, but it did provide that defendants could attempt to rebut the presumption of reliance by showing that the alleged misrepresentation that is the basis of the plaintiffs securities claim did not impact the share price of the defendant company’s securities.

Insurer’s Liability for Breach of Contract is Not a Condition Precedent to Insured’s Bad Faith Claim

Insurer’s Liability for Breach of Contract is Not a Condition Precedent to Insured’s Bad Faith Claim

A Florida appeals court recently held in Cammarata v. State Farm Florida Insurance Co. that an insured is not required to show that its insurer breached the insurance policy before it can bring a claim for bad faith.  Although the insured must show that the insurer is liable for coverage, this prerequisite can be established by something other than a judgment, such as the insurer’s voluntary payment of policy limits or a settlement.