MF Global Customer Challenges Execs' Defense Coverage Bid

Law360, New York (May 2, 2012, 8:30 PM EDT) -- An MF Global Holdings Ltd. customer said Tuesday that allowing the collapsed brokerage's executives to access $120 million in professional liability coverage for legal defense costs would be an “improper waste,” claiming the policies cover MF Global's liability to customers for its failure to safeguard their funds.

In an appeal filed in New York federal court, Sapere Wealth Management LLC argued that MF Global's misplacement of some $1.6 billion in customer funds amounted to a strict liability violation of its breach of trust as the custodian...
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