Great American Sues Bally Over $10M D&O Payout

Law360, New York (January 28, 2009, 12:00 AM EST) -- Great American Insurance Co. has filed a lawsuit against bankrupt Bally Total Fitness Corp. over more than $10 million advanced to the fitness center operator for directors and officers coverage in financial restatement litigation, saying the funds rightfully belong to the insurance company.

Great American filed the adversary case against Bally on Tuesday in the U.S. Bankruptcy Court for the Southern District of New York contending that it had never ceded ownership of the funds to Bally and is, in fact, attempting to rescind the payment...
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