Insurers Say WaMu D&O Coverage Suit Is In Wrong Court

Law360, New York (June 26, 2012, 10:18 PM EDT) -- XL Specialty Insurance Co. and 10 other insurers sought Monday to nix a coverage fight with Washington Mutual Inc.'s liquidation trust over a $500 million claim against former WaMu directors and officers, arguing a Delaware bankruptcy court lacks jurisdiction over the suit.

At issue is coverage of the former WaMu directors and officers' defense costs against claims by WaMu and a creditors committee that the executives breached their fiduciary duties by allowing a $500 million transfer from WaMu to its subsidiary Washington Mutual Bank, shortly before...
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