Allstate Off Hook For Share Of $35M Bond Losses

Law360, New York (November 2, 2011, 5:51 PM EDT) -- A federal judge ruled Tuesday that Allstate Life Insurance Co. does not owe a contribution to an Arizona town for losses the insurer and a putative class suffered on $35 million worth of bonds, but left Allstate on the hook for the town's contractual interference counterclaim.

The town of Prescott Valley counterclaimed that the insurer was partially responsible for the alleged losses because it improperly induced the bonds' indenture trustee Wells Fargo Bank NA to use transaction privilege tax revenues to pursue litigation against the town...
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