2nd Circ. Denies FDIC $22M Coverage For Merger Fraud

Law360, New York (June 8, 2010, 1:19 PM EDT) -- A federal appeals court has upheld an order denying the Federal Deposit Insurance Corp. some $22 million in claims coverage from Great American Insurance Co. over alleged merger-related fraud by executives of the now-defunct Connecticut Bank of Commerce.

A three-judge panel in the U.S. Court of Appeals for the Second Circuit ruled Monday that the U.S. District Court for the District of Connecticut had properly granted summary judgment to defendant GAIC because misrepresentations by CBC officials in their insurance applications gave the insurer the right to...
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