New York High Court Finds Disgorgement Payment Insured “Loss” Rather Than Uninsurable “Penalty”

Reversing the New York Appellate Division, First Department, the New York Court of Appeals, in a 6–1 landmark decision, held that a $140 million disgorgement payment is an insured “loss,” after a long history of insurance companies incorrectly characterizing such a payment as a “penalty” and, therefore, uninsurable as a matter of law.