NY High Court Ruling Could Shake Up Disgorgement Coverage

Law360, New York (June 11, 2013, 8:37 PM EDT) -- New York’s high court on Tuesday revived JPMorgan Securities Inc.’s suit seeking insurance coverage for $160 million in disgorgement its predecessor paid in a market-timing settlement, a decision lawyers said could leave insurers exposed to massive liability if fraud targets don't keep the profits from their alleged schemes.

A unanimous New York State Court of Appeals overturned the dismissal of the investment bank's complaint, filed in New York City in 2009, that says seven insurers including Chubb Corp. unit Vigilant Insurance Co. — the primary provider...
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