School Goes After Broker Over FCA Subpoena Defense Costs

Law360, New York (October 30, 2013, 2:36 PM EDT) -- BrightStar Education Group Inc. sued a large insurance broker in Colorado federal court on Tuesday, blaming it for an insurer's refusal to cover the substantial cost of defending against a subpoena tied to a False Claims Act suit.

According to the complaint, New York-based NFP Property & Casualty Services Inc. waited months to notify BrightStar's insurer, Great American Insurance Co., about the subpoena issued by the Office of Inspector General of the U.S. Department of Education, even though BrightStar repeatedly reminded the broker to provide the...
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