FDIC's $176M Westernbank D&O Suit Survives Dismissal Bid

Law360, Chicago (October 24, 2012, 4:07 PM EDT) -- A Puerto Rico federal judge refused Tuesday to toss the Federal Deposit Insurance Corp.'s claims seeking $176 million from directors and officers of Westernbank Puerto Rico and demanding enforcement of their D&O insurance policies, finding the regulator alleged enough details for its gross negligence claims to proceed.

U.S. District Judge Gustavo A. Gelpí also rejected a group of insurers' arguments that the FDIC cannot try to force them to provide liability coverage, rejecting the group's argument that a so-called insured vs. insured policy exclusion barred the...
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