Appeals Court Grills Biotech, Insurer on SEC Probe Coverage

A biotechnology company butted heads with an American Financial Group Inc. insurance unit in arguments before a federal appeals court over whether the carrier has to pay defense costs stemming from investigative and enforcement actions by the SEC.

Judges on a US Court of Appeals for the Ninth Circuit panel probed both JanOne Inc. and the insurer about how the phrase “arising out of” should be interpreted, while acknowledging the parties disagree on whether Nevada or Minnesota law should apply to the dispute.

The hearing comes as other courts have grappled with insurance policy language surrounding notice and related claims. ...