Insurer Foils Advest Claim For Coverage In Fraud Suit

Law360, New York (October 30, 2009, 5:20 PM EDT) -- A federal judge has tossed broker-dealer Advest Inc.'s counterclaim in a suit brought by American Automobile Insurance Co. seeking a declaratory judgment that the insurer has no duty to defend or indemnify Advest in litigation stemming from an employee's kickback scheme.

Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York on Thursday granted 's motion to summarily dismiss Advest's tit-for-tat claim that it was, in fact, entitled to coverage under the insurer's policy.

AAIC argued that the underlying lawsuit —...
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