Broker Wants Coverage For $485M Provident Fraud

Law360, New York (November 3, 2010, 1:21 PM EDT) -- Next Financial Group Inc. wants its insurer to cover underlying class action litigation alleging the broker-dealer breached its fiduciary duty by promoting energy investments sponsored by Provident Royalties LLC, which has been accused of running a $485 million Ponzi scheme.

Next Financial filed its lawsuit against Arch Specialty Insurance Co. in the U.S. District Court for the Northern District of Texas on Tuesday. The policy at issue has liability limits of at least $2 million, per occurrence limits of $3 million and aggregate limits of at...
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