Calif. tries to freeze Lloyd's U.S. fund.(Lloyd's of London is sued by California Department of Corporations over alleged securities fraud)

National Underwriter Property & Casualty-Risk & Benefits Management, March, 1996 by Howard, Lisa S.

LONDON--U.S. insurance regulators reacted angrily last week to a lawsuit against Lloyd's of London, which seeks to freeze the $10 billion Lloyd's American Trust Fund. The lawsuit, filed by the California Department of Corporations in Los Angeles Superior Court, alleges that Lloyd's fraudulently sold securities in its syndicates to more than 500 California investors, who became Lloyd's members.

The suit names 103 defendants, including Lloyd's Chairman David Rowland and Chief Executive Officer Ron Sandler. Other defendants are former chairmen Peter Miller, Peter Green and David Coleridge, as well as various underwriters and members and managing agents. The California Department of Corporations alleged in the suit that Lloyd's violated securities laws by failing "to...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.