Legion Partners asset Mgmt, LLC v. Underwriters at Lyod's London

Looking beyond Albert's characterization of his claims, the Court reasonably can infer from the Counterclaim that Legion, acting through White and Kiper, allegedly acted against its investors' interests and violated federal laws and regulations by leaking material, nonpublic information. Such acts fall within the scope of ‘Wrongful Acts’ as contemplated by the Policy. Id at *23-24.

Rather, Wrongful Acts encompasses a broad array of specifically enumerated conduct . . . [and] is not limited to a ‘breach of the duty.’ Any conduct that is an ‘act,’ or an ‘error,’ or a ‘misstatement,’ or a ‘misleading statement,’ or ‘neglect,’ or an ‘omission’ could be a ‘Wrongful Act.’ Id at *20-21.

Albert’s makes factual allegations that Legion committed [‘]Wrongful Acts[’] in which controlling members, White and Kiper. Specifically, Albert alleges his counterclaim ‘stems from multiple breaches of fiduciary duty and violations of federal laws and regulations by two self-dealing hedge fund managers who abused their roles as fiduciaries to clients[.]’ Id at *21.

The Insurer shall pay, on behalf of the Insured Organization for Loss which the Insured Organization pays as indemnification