XL Appeals Coverage Of $26M False Claims Settlement

Law360, New York (May 7, 2012, 8:31 PM EDT) -- Two XL Group PLC units fought Wednesday to shake coverage of a $26 million False Claims Act settlement that real estate lender Ciena Capital LLC reached with the federal government, telling a New York state appeals court that the alleged wrongdoing preceded their insurance policies.

The dispute has its roots in a hedge fund's whistleblower suit unsealed in 2007, known as the Brickman action, which accused Ciena of fraudulently issuing loans that were backed by the U.S. Small Business Administration. Ciena and its parent company, Allied...
To view the full article, register now.