Allied Can't Ditch Securities Claims Coverage Suit

Law360, New York (May 9, 2011, 4:16 PM EDT) -- A judge on Monday declined to toss a lawsuit Philadelphia Indemnity Insurance Co. filed against Allied Mortgage and Financial Corp. in Florida to free itself from covering the insolvent company in investor actions asserting negligent misrepresentation and other claims.

U.S. District Judge Adalberto Jordan disagreed with Allied and other defendants that the declaratory judgment suit should be dismissed because of what they argued were parallel proceedings in Florida state court, namely the underlying investor actions seeking damages over Allied's alleged mishandling of investments and loans....
To view the full article, register now.