Petters, Insurers Settle Coverage Suit Over $3.7B Fraud

Law360, New York (October 29, 2010, 1:12 PM EDT) -- An affiliate of insurer XL Group PLC has agreed to pay about $1 million to the receiver for the bankrupt companies of convicted Ponzi schemer Thomas J. Petters to settle a coverage dispute over litigation related to a $3.7 billion fraud.

On Thursday, Judge Richard H. Kyle of the U.S. District Court for the District of Minnesota dismissed the coverage lawsuit, in which Petters Group Worldwide LLC and Petters Co. Inc. sought to compel Greenwich Insurance Co. and XL Specialty Insurance Co. to make the insurance...
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