Insurer Off Hook For Accounting Biz's $259M Judgment Share

Law360, New York (April 1, 2013, 4:59 PM EDT) -- A New York federal judge ruled Thursday that a wrongful acts exclusion saves Admiral Insurance Co. from covering Silverman Neu LLP in a class action alleging the accounting firm helped debt counseling companies commit fraud and should contribute to a $259 million judgment.

Silverman unsuccessfully challenged Admiral's refusal to cover, under a $4 million policy, an underlying class action that sought to recover payments that customers made to credit counseling companies that allegedly misrepresented themselves as nonprofits.

U.S. District Judge Joseph Bianco ruled that an exclusion...
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