Ex-Thornburg Execs Sue Insurer Over D&O Claims

Law360, New York (November 5, 2009, 2:25 PM EST) -- Former executives of bankrupt Thornburg Mortgage Inc. have sued XL Specialty Insurance Co. for allegedly breaching a policy agreement by failing to cover their defense costs in a case accusing them of improperly using Thornburg employees and resources to start a new company, SAF Financial Inc.

Former CEO Larry Goldstone and former Chief Financial Officer Clarence Simmons III filed suit on Wednesday in the U.S. District Court for the District of Maryland contending that the insurer has blatantly overlooked certain terms of the directors and officers...
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