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Travelers Says Charney Defamation Suit Costs Not Covered

Law360, New York (June 16, 2017, 5:14 PM EDT) -- Travelers Indemnity Co. on Thursday asked a New York federal court to declare it does not have to pay the costs hedge fund Standard General LP incurred defending a defamation lawsuit by American Apparel’s ousted CEO Dov Charney, saying the suit was over an employment issue and not advertising.

Travelers argued the suit by Charney falls under a policy exclusion for employment suits because he would not have sued if he was not ousted as CEO, and that attempting to characterize Standard’s statements to the press...
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