Bank Wants Chubb Unit To Cover Koss Embezzlement Suit

Law360, New York (September 15, 2011, 5:41 PM EDT) -- A Wisconsin bank slapped a Chubb Corp. unit with a lawsuit Thursday seeking coverage for litigation brought against the bank by Koss Corp. over $17.4 million a now-imprisoned former Koss executive embezzled from the company's accounts.

Park Bank and its owner, Bankmanagers Corp., allege in Wisconsin federal court that under a community bank bond issued to Bankmanagers and its subsidiaries, Federal Insurance Co. must indemnify Park Bank for attorneys' fees and costs and any judgment against the bank in the underlying, ongoing Koss suit.

That suit,...
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