Insurers Balk At Coverage For $26M Ciena Settlement

Law360, New York (August 25, 2011, 4:38 PM EDT) -- Two XL Group PLC units told a New York state judge Thursday that they aren't required to indemnify commercial real estate company Ciena Capital LLC for a $26 million False Claims Act settlement with the federal government.

Ciena and its parent company, Allied Capital Corp., agreed last year to the $26 million settlement to end a hedge fund's whistleblower suit — which XL Specialty Insurance Co. and Indian Harbor Insurance Co. discovered in 2008 after it was unsealed — accusing Ciena of fraudulently issuing loans that...
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