Prudential Sues Legal Plan Provider Over Loan Audits

Law360, New York (October 10, 2017, 8:46 PM EDT) -- Prudential Insurance hit Pennsylvania-based legal plan provider The Legal Coverage Group and its chief executive on Friday with a $33.8 million lawsuit in New York claiming the company has repeatedly defaulted on the terms of a $40 million financing deal and dodged calls for audited financial statements.

The insurance giant also accuses LCG CEO Gary Frank of conversion and unjust enrichment when he paid himself at least $6.5 million from money Prudential began loaning the company in 2014, above an agreed-to limit of $5 million.

LCG’s bank...
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