Axis, Sompo Units Win Somali Money-Laundering Insurance Fight

A Maryland law firm’s former attorney lost an insurance appeal against AXIS Capital Holdings Ltd. and Sompo International Holdings Ltd. insurance units after a federal appeals court ruled an underlying criminal indictment isn’t covered by a $20 million liability insurance policy.

Jeremy Schulman, a former attorney at Shulman, Rogers, Gandal, Pordy & Ecker, can’t force AXIS Surplus Insurance Co. and Endurance American Specialty Co. to pay for his defense costs over federal money laundering charges, the US Court of Appeals for the Fourth Circuit said Thursday.

The insurers paid $700,000 of Schulman’s defense costs after the Department of Justice served ...