Progressive Challenges Ponzi Bank’s Settlement Claims

Law360, New York (August 11, 2011, 7:51 PM EDT) -- Progressive Casualty Insurance Co. sought Wednesday in Oregon to beat the coverage claims of Umpqua Bank, which had accused the insurer of underfunding a settlement over the bank’s alleged involvement in a bankrupt company’s Ponzi scheme.

Progressive funded about 41 percent of the settlement that Umpqua reached with a liquidation trustee of Summit Accommodators Inc. and others who claimed the bank aided Summit's principals in the alleged fraud. Umpqua, which filed suit in December, argues that the settlement should have been fully covered under the directors...
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