PE Firm On Its Own In Fraud Row, Great American Says

By Amy O'Connor (July 8, 2021, 7:01 PM EDT) -- A private equity firm facing accusations that it tinkered with the books of a company it was selling can't tap its insurance policy to pay for its defense, Great American E&S Insurance Co. told a California federal court Wednesday.

Great American has asked the court to find it is not liable for Lotus Innovations' defense costs in a fraud and breach of contract lawsuit because the policy specifically excludes coverage for such acts. Lotus is accused by a private investor of "knowingly and intentionally" perpetrating an accounting scheme in a $20 million sale of software company gen-E Holdings back in 2017....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!