The New York Court of Appeals has held that a $140 million disgorgement payment in an SEC settlement is not a non-covered “penalty” under a professional liability policy. According to the court, the payment had compensatory purposes and was measured by an injured party’s losses and third-party gains. J.P. Morgan Secs. Inc. v. Vigilant Ins. Co., 2021 WL 5492781 (N.Y. Nov. 23, 2021).
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