Stark Novus Financial Updates on Insurance Coverage Dispute
Stark Novus Financial Inc. (OTC: SNFI) has received a favorable ruling from an intermediate appellate court in New York, which denied the insurer's motion for reargument and leave to appeal regarding coverage under its D&O insurance policy. The decision upholds a prior summary judgment that found the retroactive date exclusion defense used by the primary layer insurer should not apply to certain claims made by Stark Novus Financial. The company has spent tens of millions defending against these matters, primarily between 2021 and 2023. While the specific claims covered under the policy and reimbursable expenses remain undetermined, the ruling is a step toward resolving whether coverage applies to ongoing lawsuits, investigations, and indemnification obligations. The primary layer insurance has a $5 million limit with at least $45 million in excess Side ABC coverage available above that. Stark Novus Financial continues working towards resolution of its claim for coverage.
Topics: appellate court ruling D&O insurance retroactive date exclusion