Liberty, Law Firm Reach Deal Over Mortgage Fraud Coverage

Law360, New York (November 14, 2012, 1:35 PM EST) -- A New York federal judge on Tuesday discontinued proceedings in Liberty Insurance Underwriters Inc.'s bid to rescind professional liability policies issued to Reback & Potash LLP over the law firm's alleged lies about a purported $1.4 million mortgage fraud scheme, announcing that the parties have reached a tentative settlement.

U.S. District Judge Allyne R. Ross ordered the case closed without prejudice after receiving news of the agreement, reserving the right to reopen the litigation by Friday if the reported deal is not consummated.

The insurance company...
To view the full article, register now.