Insurers Off Hook To Defend Formosa In PVC Pipe FCA Suit

Law360, Los Angeles (July 23, 2012, 7:59 PM EDT) -- A California judge ruled Monday that National Union Fire Insurance Co. of Pittsburgh, Pa., and others have no duty to defend Formosa Plastics Corp U.S.A. in massive federal False Claims Act litigation over defective PVC pipes, saying the allegedly intentional wrongdoing wasn’t covered by insurance.

“[T]he [federal False Claims Act] plaintiffs allege Formosa breached a duty to disclose information about false claims,” Los Angeles Superior Court Judge John Shepard Wiley Jr. wrote in an opinion Monday granting the insurers’ motion for summary adjudication in the case....
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