NY Court Upends MF Global Win Over $141M Loss Coverage

Law360, New York (July 16, 2013, 6:43 PM ET) -- A New York state appeals court on Tuesday reversed MF Global Inc.'s victory over an American International Group Inc. subsidiary that had refused coverage for a $141 million futures trading loss, faulting a lower court for failing to investigate the trader responsible.

Saying a trial court acted too quickly in ruling that the loss was covered, a unanimous panel remanded the case to determine if imprisoned commodities trader Evan Dooley qualified as an MF Global employee under fidelity bonds issued by New Hampshire Insurance Co. and...
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