We previously reported on the jury verdict against BankAtlantic in the matter of In re BankAtlantic Bancorp, Inc. Securities Litigation, S.D.Fla. Docket No. 07-cv-61542-UU. (Our prior posting is available here: http://www.insurereinsure.com/?entry=3006.)
In a lengthy ruling issued late last month (Apr. 25, 2011), a federal judge in Miami granted BankAtlantic’s request for judgment as a matter of law. Finding that BankAtlantic’s losses were caused by many factors, and rejecting key testimony from an expert hired by the shareholders, the court found that there was no evidence from which a reasonable jury could have found loss causation. The result is a now-total victory for the defendant bank. A copy of the court’s decision is available here. An appeal remains possible.
This ruling has significance because BankAtlantic was among the first banks to experience troubles with its real-estate related loans in 2007. Issuers and holders of D&O insurance policies may take note that this case resulted in no indemnity payment, though the defense costs were considerable.