San Diego County Superior Court grants Plaintiffs’ motion for summary adjudication declaring that primary insurer has a duty to pay Plaintiffs’ defense costs in multiple securities actions.

On March 3, 2005, in Schuster v. Gardner, et al., 2005 WL 487880 (March 3, 2005), the Court of Appeal, Fourth Appellate District, affirmed the Order of the San Diego County Superior Court sustaining defendants' demurrers without leave to amend. The Court of Appeal found that the trial court correctly determined that the shareholder's action was a derivative action, under both California and Delaware law, which the shareholder lacked standing to pursue directly. Daniel J. Bergeson, Caroline McIntyre, and Stephen D. Rockwell represented defendant and respondent Stephen P. Gardner, the former Chief Executive Officer of Peregrine Systems, Inc.