Federal Wins Dismissal Of $5M Omega Coverage Suit

Law360, New York (December 1, 2010, 5:52 PM EST) -- A judge has tossed a suit brought by Omega Advisors Inc. accusing Federal Insurance Co. of denying coverage for $5 million in losses the hedge fund suffered through the malfeasance of an employee who led it into a failed purchase of federal Azerbaijani securities.

In an opinion filed Tuesday, Judge Joel A. Pisano of the U.S. District Court for the District of New Jersey pointed out that coverage was only available for losses discovered during the bond period and then reported to Federal within 60 days....
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