AmTrust Insurer Can’t Shake Claims Against Former Health Execs

An AmTrust Financial Services Inc. unit insuring a healthcare company lost a bid to dismiss claims from a pain relief product creator seeking coverage for a $1.77 million judgment against the policyholder’s former executives over alleged misrepresentations tied to a debt agreement.

Associated Industries Insurance Co. failed to show that its private company management liability policy excluded payment of the judgment against Stephen Woody and David Fann, who served as the CEO and president, respectively, of Avadim Health Inc., according to a Wednesday order in the US District Court for the Western District of North Carolina.

The carrier sued the ...