WexTrust Receiver Sues Insurers For Malpractice Funds

Law360, New York (July 28, 2011, 1:18 PM EDT) -- The receiver recovering funds from WexTrust Capital LLC for a $255 million Ponzi scheme that led to prison terms for company executives sued two insurers Tuesday in New York, demanding they fund a $13 million malpractice settlement reached with WexTrust's law firm.

Receiver Timothy J. Coleman's complaint seeks an order from U.S. District Judge Denny Chin that primary policy issuer Westport Insurance Corp., a unit of Swiss Re, and excess policy issuer Liberty Mutual Insurance Co. must fund the settlement he reached in May with the...
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