7th Circuit Reverses Course In Market Timing Case

Law360, New York (February 26, 2008, 12:00 AM EST) -- The U.S. Court of Appeals for the Seventh Circuit has overturned an award handed down against Allmerica Financial Insurance and Annuity, adopting a tough stance on whether companies can recoup lost profits from market timing practices.

On Wednesday, the Seventh Circuit tossed out the $1.1 million award previously given to Emerald Investments, ruling that the fund was not entitled to such damages in the breach of contract suit.

The origins of the dispute date back to March 1999 when Emerald bought $5 million worth of annuities...
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