Insurer Sues To Skirt Coverage Over $12M Lost By Ill. Agency

Law360, Chicago (September 18, 2012, 6:35 PM EDT) -- Gotham Insurance Co. sued investment firm Grigsby and Associates Inc. and its president in Illinois state court Monday, saying it owes no coverage for an administrative proceeding alleging the firm misrepresented the security of a $12 million investment the state claims it lost in a bank failure.

In its complaint, Gotham seeks to avoid coverage for a "statement of evidence" in which the Illinois secretary of state's securities department alleges Grigsby and Associates breached its fiduciary duty to the Illinois Student Assistance Commission by misrepresenting the...
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