Executive Life Insurance Company
Complex Business Litigation
CFP’s Dr. Fenn testified on behalf of Credit Lyonnais and the French government in an extraordinarily complex $6 billion lawsuit brought by the losing bidders for U.S. life insurance company Executive Life, which had failed under the weight of its junk bond holdings. Dr. Fenn’s testimony, which drew on his experience as the life insurance industry expert at the Federal Reserve Board, went to the issue of loss causation: Specifically, whether any of the losing bids satisfied then-California Insurance Commissioner John Garamendi’s requirements for protecting policyholders against further losses. On the eve of trial, the parties settled for approximately $600 million.