2nd Circ. Nixes Investing Co.'s Bid For Fraud Coverage

Law360, New York (November 16, 2010, 6:39 PM EST) -- A federal appeals court affirmed Tuesday that Quanta Specialty Lines Insurance Co. is not required to provide Investors Capital Corp. with coverage for arbitration proceedings stemming from a former employee's alleged securities fraud.

The U.S. Court of Appeals for the Second Circuit issued a summary order affirming a decision that awarded summary judgment to Quanta in its suit seeking a declaration it is not obliged to pay for Investors Capital's ongoing arbitration.

In affirming the decision, the Second Circuit agreed with the district judge's conclusion that...
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