Insurer Tries To Sink Shipbuilder's FCA Coverage Claim

Law360, New York (August 14, 2012, 4:03 PM EDT) -- XL Specialty Insurance Co. asked a Louisiana federal judge on Monday to declare it doesn't have to defend Bollinger Shipyards Inc. from a False Claims Act suit over $78 million in modifications the shipbuilder made to U.S. Coast Guard patrol boats.

XL says it doesn't owe indemnity to Bollinger because the company allegedly lied to the Coast Guard about the strength of hull modifications it had been contracted to perform on patrol cutters, or WPBs.

According to the government's July 2011 lawsuit, Bollinger had said the...
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