Isilon Systems v. Twin City
(W.D. Wash. August 27, 2010)
Ex-Executives of Isilon Systems Inc. have filed suit against Twin City Fire Insurance Company contending that the insurer wrongly denied coverage for losses arising out of an accounting fraud action started by the SEC. The SEC action was on the heels of two shareholder actions. While Isilon had nearly $20 Million in underlying coverage, the underlying policies have been exhausted, with defense costs reaching $75 Million.
The complaint seeks damages based upon breach of contract, breach of covenant of good faith and requests a declaration of coverage. The complaint seeks both defense costs incurred in the shareholder and SEC actions, as well as indemnity under the policy.
To see a copy of the complaint see here
Brian Biggie and Joseph Oliva