D&O Insurance Carrier Denies Coverage to SEC-Investigated Policy Holder
An update on the matter we wrote about three months ago, the SEC’s investigation into allegations that PCS Edventures!.com misled shareholders by prematurely booking earnings tied to a multi-million dollar deal with the government of Saudi Arabia.
In a recent 10-Q, the Idaho-based provider of educational software disclosed that its D&O insurance carrier, Navigators Insurance, “denied coverage of any claims relating to the SEC investigation, including defense costs, based on its contention that PCS did not give the insurer timely notice of the SEC’s non-public investigation or the related issuance of subpoenas by the SEC.” In response, PCS has filed suit against Navigators for breach of contract.
For what it’s worth, a search on our SEC Filings page reveals that two other public companies have recently filed similar lawsuits against Navigators: Blueknight Energy Partners, L.P. and Applied Minerals, Inc. Both suits are pending.