10th Circuit: Company’s Agreement to Defend Former CEO Contained a Loophole
A teleconference company is off the hook, at least for now, from paying the legal fees of a former chief executive who was sent to prison for securities fraud. The 10th Circuit has ruled that a trial judge erred in granting a preliminary injunction in favor of ClearOne's former CEO who had an agreement with the company to pay her legal fees. The panel found that the agreement did not create an unconditional obligation to cover her fees and permitted the company to assert its own financial problems to avoid payment.
