Bankrupt Lugano Diamonds & Jewelry Inc. sued insurer Travelers Casualty and Surety Co. over its refusal to fully cover legal costs from nearly 20 lawsuits and an investigation by the US Securities and Exchange Commission.
Travelers is engaging in “unreasonable claims handling” to protect its own financial interests, Lugano said in a Wednesday suit filed in the US Bankruptcy Court for the District of Delaware.
Lugano, which operates high-end jewelry boutiques and is owned by Compass Group Diversified Holdings LLC, filed for Chapter 11 in November after accusing former CEO Mordechai Ferder of stealing millions of dollars from the business ...
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