Insurers Freed From Covering Carlyle Fund Investor Suits

Law360, New York (May 16, 2014, 4:56 PM EDT) -- A D.C. judge on Thursday excused 16 insurers from defending or indemnifying The Carlyle Group LP against investor class actions over the demise of an offshore mortgage-backed securities investment fund, finding coverage barred by a professional services exclusion.

D.C. Superior Court Judge Frederick Weisberg determined that the private equity titan's primary and excess carriers were not responsible for covering a slew of suits blaming misrepresentations and mismanagement for the defunct Carlyle Capital Corp. Ltd. fund's slide into compulsory liquidation.

The dispute turned on a professional services...
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