Federal Judge: Insurer Entitled To Rescission, Would Have Breached Duties Otherwise

Mealey's ( October 3, 2025, 11:00 AM EDT) -- CHICAGO — A federal judge in Illinois determined that an insurer was entitled to rescind a directors, officers and corporate liability insurance policy in a telecommunications business insured’s breach of contract and bad faith lawsuit arising from underlying allegations under the Illinois False Claims Act (IFCA), concluding that the insurer would have breached its duties to defend and indemnify the insured had it not been entitled to rescission....