Archegos Insurer Sues to Avoid Covering Costs of Firm’s Failure

An insurer for Bill Hwang and his Archegos Capital Management is suing to avoid paying any costs incurred by Archegos, Hwang and other senior executives of the investment firm from a separate suit by a former employee who claims the implosion of the family office cost him as much as $50 million.

Former Archegos managing director Brendan Sullivan filed suit last year against the company and senior executives including Hwang. Sullivan alleged that over several years he was forced to put more than half of his annual compensation into a deferred compensation plan that Hwang used to pursue risky trading ...