Paraco Sues Travelers To Cover Shareholder Suit Losses

Law360, New York (July 24, 2012, 8:19 PM EDT) -- Travelers Casualty and Surety Co. of America is facing a lawsuit alleging it wrongfully denied Paraco Gas Corp. claims for coverage under its directors and officers insurance policy for an ongoing shareholder suit over allegedly bogus bonuses, according to a complaint removed to New York federal court Monday.

The New York family-owned propane gas distributor first filed the suit in June in New York state court alleging the insurer wrongfully denied coverage over an exclusionary clause in Paraco's D&O policy that substantially limited its protections. Paraco accused...
To view the full article, register now.