Delphi Sues Insurer For Legal Costs

Law360, New York (February 23, 2007, 12:00 AM EST) -- Bankrupt Delphi Corp. has sued its insurer over a $19 million legal bill the auto parts maker chalked up while defending itself against accusations of securities fraud.

The suit, filed Jan. 31 in the Manhattan bankruptcy court, claims that under the liability insurance policy issued by National Union Fire Insurance Co. in February 2004, Delphi is covered for the costs incurred during an SEC investigation and the ensuing lawsuits.

The company says Pittsburgh-based National Union, a unit of American International Group Inc., has so far refused...
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