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

3:10-cv-02206

Court

Texas Northern

Nature of Suit

Insurance

Judge

Royal Furgeson

Date Filed

November 2, 2010

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