Chartis Accused Of Failing To Cover $17M Ponzi Loss

Law360, New York (May 25, 2012, 5:35 PM EDT) -- Chartis Inc. was hit with a suit in Texas federal court Thursday claiming that the insurance giant wrongfully denied coverage of $17 million lost by an electrical manufacturer unwittingly caught up in a $670 million Ponzi scheme.

Cooper Industries Inc. argues that its losses from its unwitting participation in the scheme are properly covered by its commercial crime policy.

The suit claims that in denying Cooper's claims to relief, the insurer, National Union Fire Insurance Co. of Pittsburgh, a subsidiary of Chartis, violated the terms of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.