After the IRS targeted our client, things got even worse when their D&O insurer refused to cover the $1M+ search warrant and subpoena response cost. But A&K had other plans.
A DOJ, SEC or IRS subpoena is one of the most stressful – and expensive – challenges that a business can face. Compounding the problem is the extreme difficulty of securing insurance coverage for the (huge) response costs.
But Anderson & Kreiger’s insurance group has been able to safely guide a number of clients through these thorny issues.
In one of our most dramatic cases, a client racked up over $1 million in legal bills in responding to search warrants and subpoenas from the IRS’ Criminal Investigation Division. Its D&O insurer had disclaimed coverage, saying a search warrant was not a “claim,” that parties that weren’t insureds had incurred fees, and that, because an entity other than the insured had paid the costs, the insured was not entitled to indemnification.
A&K responded with a lawsuit in Texas federal court and, after winning summary judgment and a quick mediation, recovered nearly all of the attorneys’ fees expended. We had one very happy client at the end of the day.