Insurer Loses Bid To Recover $10M From Bally

Law360, New York (June 17, 2009, 12:00 AM EDT) -- Siding with the bankruptcy court, a district court judge has rejected Great American Insurance Co.'s bid to recoup more than $10 million advanced to Bally Total Fitness Holding Corp. for directors and officers coverage in financial restatement litigation.

On Tuesday, U.S. District Judge Shira Scheindlin affirmed the U.S. Bankruptcy Court for the Southern District of New York's earlier ruling rejecting the idea that the funds rightfully belonged to GAIC.

The roots of the case can be traced back to 2001, when GAIC first issued directors and...
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