MADISON, Wis. - Insureds failed to establish a basis against insurers for direct or derivative liability with regard to an insurance broker's alleged embezzlement, a Wisconsin federal judge ruled Oct. 25; however, the judge found that the insureds do state a viable cause of action with respect to the broker's acts of fraud accomplished under the guise of apparent agency authority (Kolbe & Kolbe Millwork Company Inc., et al. v. Manson Insurance Agency Inc., et al., No. 12-00879, W.D. Wis.; 2013 U.S. Dist. LEXIS 153391).