Insurer Disavows Shipbuilder's $78M FCA Suit At 5th Circ.

By Michael Macagnone (March 16, 2015, 6:58 PM EDT) -- XL Specialty Insurance Co. told the Fifth Circuit on Friday that it should not have to cover Bollinger Shipyards Inc. for a False Claims Act suit accusing it of botching a $78 million U.S. Coast Guard vessel modification contract.

The insurer said in its brief Friday that Bollinger had not been accused of anything that would be covered under XL's insurance policy, which does not provide coverage when work fails to meet expectations or when the company engages in "dishonest acts." Bollinger has been accused of providing the Coast Guard with false information about the strength of modified hulls for Coast...

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