MF Global 'Direct Loss' Ruling Weakens Fidelity Insurers

Law360, New York (July 17, 2013, 7:26 PM EDT) -- MF Global Inc. cleared a huge hurdle Tuesday in its bid to have an American International Group Inc. unit cover a $141 million trading implosion, erasing doubt in New York appeals court over whether it suffered the direct loss necessary for a fidelity bond guarding against employee theft to kick in and, experts said, blurring the legal line between first- and third-party coverage. 

Insurance legal experts saw the ruling as a major boost for MF Global despite New York's First Department — a midlevel appeals court...
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