Securities Litigation

The Eleventh Circuit Court of Appeals recently issued an opinion in Bank of Brewton v. The Travelers Companies, Inc., 777 F.3d 1339 (11^th Cir. February 9, 2015), addressing whether, under Alabama law, a duly authorized stock certificate procured under false pretenses constituted a "counterfeit" document triggering coverage under a financial institution bond. The Court found that it did not. The case arose out of several loans made by the Bank of Brewton to a customer named Hines. As collateral, Hines had assigned to the bank certain shares of stock in a company named The Securance ...