Pharmaceutical Company Sues Insurers To Recover On Madoff Ponzi Scheme Losses

Pharmaceutical Company Sues Insurers To Recover On Madoff Ponzi Scheme Losses

Pharmaceutical company Upsher-Smith Laboratories Inc. sued St. Paul Fire & Marine Insurance Co. and its affiliate Travelers Casualty and Surety Company of America on July 14 in Minnesota state court, seeking to recover $14 million on policies taken out as a result of losses the company took on as victims of the Bernard L. Madoff Ponzi scheme (Upsher-Smith Laboratories, Inc. v. St. Paul Fire & Marine Insurance Co., et al., No. N/A, Minn. Dist., Hennepin Co.). The complaint was filed in the Hennepin County District Court. Upsher-Smith contends that St. Paul has failed to cover a $13 million employee benefit plans administration liability claim, while Travelers has failed to cover a $1 million crime loss claim arising from losses sustained in the Madoff Ponzi scheme.
 
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