Insurer Claims Standing To Sue In $40M Investment Loss Row

Law360, New York (October 17, 2012, 3:48 PM EDT) -- Federal Insurance Co. told a California federal court on Tuesday that it has standing to sue investment consulting firm Wilshire Associates Inc. over allegedly imprudent advice that caused a $40 million investment loss, arguing that it is a subrogee of the Wilshire client that lost the money.

The Ohio-based Timken Co., which is insured under a Federal policy, followed Wilshire's recommendation to invest $50 million with an investment manager that turned out to be a Ponzi scheme, resulting in $20 million of the principal investment going...
To view the full article, register now.