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Lloyd’s "absurd" to refuse Stanford D&O: judge
27 January 2010
A federal judge has ordered Lloyd’s of London to pay for the criminal defence costs for Allen Stanford, the founder and chairman of Stanford Financial Group, and two officers in his company accused for their part in a $7bn Ponzi scheme.
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directors' and officers' liability
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A federal judge has ordered Lloyd’s of London to pay for the criminal defence costs for Allen Stanford, the founder and chairman of Stanford Financial Group, and two officers in his company accused for their part in a $7bn Ponzi scheme.
There is a continuing disagreement between the parties over whether Lloyds should keep paying the legal costs under a directors’ and officers’ liability (D&O) policy.
Lloyd’s has already refused to pay for criminal defence after last August, when the company’s chief financial officer, James Davies pleaded guilty to taking part in the scheme, according to the Houston Chronicle. The insurers have concluded that the case comes under a money laundering exclusion in the policy.
The Lloyd’s insurers have argued that the policy’s definition of...
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