Oct 2, 2009
Judge Rebuffs Insurers’ Bid to Rescind Milberg’s Coverage
Former insurers of securities class action firm Milberg waited too long to rescind coverage and sue for repayment of money spent defending the firm in a probe of a $251 million kickback scheme, a New York federal judge has ruled, holding that the carriers knew the law firm was under indictment, yet failed to act. “The law does not protect the plaintiff who turns a blind eye to such information,” the judge wrote, ruling the carriers’ rescission claims were untimely under New York’s six-year statute of limitations.