Lexington Takes Broker's Insurance Battle To Federal Court

Law360, New York (November 10, 2011, 4:02 PM EST) -- Lexington Insurance Co. moved to California federal court Wednesday a dispute with a WFP Holdings Inc. subsidiary over the insurer's alleged failure to defend the securities broker against claims of negligent investment advice.

Both Lexington and Endurance American Specialty Insurance Co. have denied responsibility for defending claims accusing WFP Securities of failing to perform proper due diligence on some of its recommended investments, the broker alleges.

Endurance initially sued WFP Securities seeking a declaration that it wasn't responsible for coverage, and the broker filed a countersuit...
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