J.P. Morgan Securities Inc. v. Vigilant Insurance

*330OPINION OF THE COURT

Graffeo, J.

In this insurance dispute arising from the insured’s monetary settlement of a Securities and Exchange Commission (SEC) proceeding and related private litigation predicated on the insured’s violations of federal securities laws, we conclude that the insurers are not entitled to a CPLR 3211 dismissal of the insured’s coverage claims. We therefore reverse and reinstate the insured’s complaint.

In 2003, the SEC and other regulatory entities undertook an investigation of Bear Stearns & Co., Inc., a broker-dealer, and Bear Stearns Securities Corp., a clearing firm, for…