May 4, 2005
Litigation partners Mitchell Auslander, Michael Young and Kelly Hnatt address annual event in Philadelphia on critical issues facing the insurance sector.
Litigation partners Mitchell Auslander, Michael Young and Kelly Hnatt recently addressed the 2005 Risk & Insurance Management Society Inc. conference in Philadelphia. Mr. Auslander, who is counsel to Marsh & McLennan Companies, Inc., participated on a “Hot Topics” panel which focused on the implications of Marsh’s recent $850 million restitution settlement with the New York Attorney General’s office. The panel advised policyholders to judiciously consider the benefits and drawbacks of participating in the settlement. As reported in Business Insurance, Mr. Auslander told attendees that eligible policyholders include Marsh’s U.S.-domiciled clients as well as foreign clients that utilized Marsh’s U.S. offices to execute business transactions. He explained that the terms of the settlement do not require that clients demonstrate they suffered harm, and the entire fund, including any interest earned, will be distributed to clients over a four-year period or sooner, depending on the number of participants in the settlement. In exchange for their settlement amounts, clients will be required to sign releases but clients will not have to release standard E&O claims or claims against any other parties. He also informed attendees that if clients elect not to participate in the settlement, they may pursue legal remedies on their own or as members of a class. Clients will receive letters explaining the settlement terms around May 20 and will have to decide whether to opt-in by September 30.
Mr. Young participated on a panel entitled "The D&O Market: Current Trends," in which he focused on current trends in securities class action litigation and the unfavorable climate in which securities cases are being litigated.
Ms. Hnatt participated on a panel, “Exposures Facing the Board: What to Tell the CFO,” where she addressed the origins of financial fraud, corporate governance reforms, and how the risk manager can help the company and its director and officers manage various exposures through better corporate governance and various insurance products.
