Pendergest-Holt v. Certain Underwriters at Lloyd's of London

PATRICK E. HIGGINBOTHAM, Circuit Judge:

In this insurance coverage dispute, various insureds — each faced with civil and criminal allegations that they engaged in a massive Ponzi scheme — seek reimbursement of defense costs under a directors’ and officers’ liability policy from the policy’s underwriters. The district court entered a preliminary injunction ordering reimbursement of defense costs pending its further order. We stayed the order; granted the underwriters’ request for expedited appeal; heard oral argument; and now modify the preliminary injunction, affirm the injunction insofar as…