2nd Circ. Won't Revive Coverage Suit Over Madoff Scheme

Law360, New York (May 11, 2011, 7:26 PM EDT) -- The Second Circuit on Wednesday refused to let Associated Community Bancorp Inc. reopen a suit claiming Travelers Cos. unit St. Paul Mercury Insurance Co. improperly denied coverage for defense costs stemming from Bernard L. Madoff's Ponzi scheme.

U.S. District Judge Janet C. Hall threw the case out in April 2010 and refused to let the bank holding company and its Westport National Bank unit file a third amended complaint.

Associated sued the insurers in 2009 for defense coverage of four lawsuits accusing the bank of breach...
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