9th Circ. Kills Brookstreet Investor's Coverage Bid

Law360, New York (July 20, 2011, 7:55 PM EDT) -- The Ninth Circuit on Wednesday ruled that an investor in Brookstreet Securities Corp., which is facing fraud allegations from securities regulators, was not owed any coverage from the defunct brokerage firm's liability insurer, upholding a lower court's ruling.

The appeals court shot down investor Judith Chiosso-Glass' challenge to a November 2009 decision granting summary judgment to Illinois Union Insurance Co. on its claims against certain allegedly defrauded clients of Brookstreet.

Illinois Union launched the interpleader action in September 2007, just months after Brookstone went out of...
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