Cutter & Buck Inc. responded to the court's issuance of an order rejecting the company's claims against Genesis Insurance Company. Cutter & Buck had sought reinstatement of its directors' and officers' liability insurance policy, which the company claimed had been improperly rescinded by Genesis in 2002. Part of any recovery in this suit would have gone to plaintiffs in the company's previously settled securities suits based on a formula in that earlier settlement. The company has expensed the costs of the Genesis suit as they have been incurred, so the ruling is expected to have little impact on the company's operations or financial condition.
“Our initial reaction is one of disappointment,” said Fran Conley, Cutter & Buck's Chief Executive Officer, “since the company believed it had insurance for some of the costs stemming from its earlier restatement. The ruling is quite lengthy, however, and we're still studying its implications. After our evaluation, we will consider all of our options, including an appeal,” added Conley. The order was entered late yesterday afternoon by the U.S. District Court for the Western District of Washington.
