Federal Seeks To Toss Omega's $5M Coverage Suit

Law360, New York (April 26, 2010, 1:30 PM EDT) -- Federal Insurance Co. has asked a judge to toss a suit brought against it by Omega Advisors Inc., which accuses its insurer of denying coverage for $5 million in losses the company suffered through the malfeasance of an employee who led Omega into a failed $140 million purchase of federal Azerbaijan privatization securities and allegedly skimmed money from the investment pool.

Federal's bonds to Omega explicitly excluded coverage for losses not reported within 60 days, the insurer said in a motion to dismiss filed Friday in...
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