LandAmerica Trustee Hits Execs With Fraud Suit

Law360, New York (June 27, 2011, 7:52 PM EDT) -- The liquidation trustee charged with recovering money for creditors of LandAmerica Financial Group Inc. sued the company’s executives Friday in Virginia bankruptcy court, claiming they should have anticipated liquidity problems with a subsidiary’s auction rate securities.

LFG Liquidation trustee Bruce H. Matson contends that the executives of the title insurance underwriter and its subsidiary LandAmerica 1031 Exchange Services Inc. breached their fiduciary duty to shareholders by failing to act in the face of an impending crisis that contributed to the company’s demise.

The trustee alleges that...
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