Broker Settles Arch Coverage Fight Over $485M Fraud

Law360, New York (September 2, 2011, 11:56 AM EDT) -- Next Financial Group Inc. on Thursday settled a Texas lawsuit against Arch Specialty Insurance Co. seeking coverage of a class action that claimed the broker-dealer promoted energy investments sponsored by a company accused of running a $485 million Ponzi scheme.

Next Financial's suit, brought in Texas federal court, argued that Arch owed coverage under a policy with liability limits of at least $2 million, per occurrence limits of $3 million and aggregate limits of at least $15 million, according to the first amended complaint.

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Case Information

Case Title

Next Financial Group, Inc. v. Arch Specialty Insurance Company

Case Number



Texas Northern

Nature of Suit



Royal Furgeson

Date Filed

November 2, 2010

Law Firms

Government Agencies

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