Bank Drops Suit Over $18M Loan Fraud Coverage

Law360, New York (June 2, 2011, 5:36 PM EDT) -- United Bankshares Inc. on Wednesday dropped a West Virginia suit seeking compensation from Federal Insurance Co. and other insurers for its losses on $18 million in loans it issued to a Virginia business owner convicted of using forged documents to secure the funds.

In a stipulation, United dismissed without prejudice all claims against Federal, the last defendant to leave the action, closing the books on the case for the time being.

Last February, the bank alleged that Federal, along with St. Paul Mercury Insurance Co., St....
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.