Appellate Court Reverses Fremont General Cases

Law360, New York (March 6, 2007, 12:00 AM EST) -- A California state appellate court has revived two cases the state’s insurance commissioner brought against national lender Fremont General Corp.

The cases, brought in 2004 by former State of California Insurance Commissioner John Garamendi in Los Angeles County Superior Court, allege the lender misappropriated funds from its subsidiaries. The insurance commissioner filed the suits on behalf of Fremont Indemnity Co., a Fremont General subsidiary.

The court dismissed both cases in 2005, but the commissioner appealed. On Feb. 28, the Court of Appeals for the State of...
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