MDL Sues Insurers for Ohio Defense Costs

The Pittsburgh fund manager in the spotlight because of soured investments at Ohio's Bureau of Workers' Compensation is suing two insurers for failure to cover the fund's legal bills. The Royal Gazette newspaper in Bermuda reported that Pittsburgh-based parent company MDL Capital Management has sued divisions of AIG and Chubb, which refused to provide defense and indemnity in a lawsuit filed against MDL by Ohio Attorney General Jim Petro. In the state's suit, Petro charges MDL with fraud and breach of contract. The lawsuit was filed this week in U.S. District Court for the Western District ...