US judge says D&O is for Stanford in “interest of fairness”
Allen Stanford has the right to use a company directors and officers (D&O) insurance policy from Lloyd’s to pay defence lawyers, US District judge David Godbey ruled.
Stanford’s co-accused, Laura Pendergest-Holt and James Davis can also access the insurance.
“The court finds it in the interest of fairness to allow directors and officers to access insurance proceeds to which they are entitled,” Judge Godbey said in the ruling.
“The potential harm to them if denied coverage is not speculative but real and immediate.”
Lloyd’s may not pay
The FT said there Lloyd’s may not pay out. In a recent court filing it said it would exclude claims resulting from “money laundering and from dishonest, fraudulent, or criminal acts”.
Bloomberg said the Lloyd’s policy was worth at least $50m. It also suggested some of the lawyers who have been unable to work for Standford because they have not been paid in the absence of the D&O payout, may return.
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