FDIC, Insurers Reach Deal In $25M Westernbank Claim Fight

Law360, Chicago (September 18, 2012, 4:42 PM EDT) -- The Federal Deposit Insurance Corp. said Monday it had reached a deal to settle its $25 million claim against Chartis Insurance Co. of Puerto Rico and Ace Insurance Co. over a pharmaceutical company's alleged fraud, which the FDIC said cost now-defunct Westernbank Puerto Rico millions.

In the suit launched by Westernbank parent company W Holding Co. Inc. before the bank went under, the FDIC said U.K.-based drug company Inyx Inc. had submitted false documents to take out Westernbank loans. As the bank's receiver, the FDIC was...
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