Fifth Circ. Stays Insurer Payout For Stanford Defense

Law360, New York (February 5, 2010, 5:50 PM EST) -- A federal appeals court has granted a reprieve to insurance companies that had been previously ordered to pay the defense costs of former Stanford International Bank Ltd. executives, who are being sued for a Ponzi scheme that cost investors billions of dollars.

The U.S. Court of Appeals for the Fifth Circuit stayed a lower court's order compelling certain underwriters at Lloyd's of London and Arch Specialty Insurance Co. to pay the defense costs on Thursday, saying the appeals court needs time to consider the issue before...
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