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Article: Mortgage meltdown may spawn more suits; Insurers eye potential exposures as crisis grows.(News)
- Article from:
- Business Insurance
- Article date:
- June 23, 2008
- Author:
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DAVE LENCKUS
The litigation tentacles reaching out of the subprime mortgage mess could entwine corporate prey well beyond the financial institutions and individuals blamed for creating the debacle and resulting credit crisis, some insurance and legal experts say.
Errors and omissions liability litigation could envelope companies that facilitated home purchases by subprime risks who eventually defaulted, they say.
And the directors and officers at companies outside the financial services sector that shareholders think failed to disclose how they would be affected by the credit crisis should expect shareholder class action litigation, ...