Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

I haven't read the directors and officers insurance policy.....hell, I can't even follow my own homeowners policy. But these employees, who presumably are covered for defense costs or "losses" should they be sued for actions taken as employees of the insured, aren't being sued for any such losses or actions(according to the motion). They appear to be seeking coverage under the policy for the cost of counsel to advise them in their positions as witnesses. The class action plaintiffs don't want to see funds used in that fashion, given that they would hope to recover the remaining value of the policy after the attorneys that are actually defending clients are paid.
That's the way I read it anyway. And if the above is correct, I think the plaintiff's motion will succeed (I think that it would be very rare for a D&O policy to cover the costs of counsel for witnesses.).

I suppose, should one of those witnesses refuse to testify or perjure themselves that they then might be charged, but even then, I doubt that they would be covered.

Just ruminatin'.