Arch Insurance Owes $3 Million for Private Equity Litigation

A private equity firm’s insurer is on the hook for more than $3 million in legal defense costs the firm incurred litigating a case related to a judgment against a corporate housing company it acquired and dissolved, a federal court ruled.

The insurance policy required Arch Insurance Co. to cover defense costs in that lawsuit, but not in other related cases, Judge Joshua D. Wolson of the US District Court for the Eastern District of Pennsylvania said in a Tuesday order.

Several entities related to Versa Capital Management LLC were involved in the lease of a residential property in New ...