Travelers Unit Drops Illinois Investment Bank Coverage Lawsuit

A Travelers Cos. Inc. unit voluntarily dropped its suit against a Chicago investment bank over coverage for a lawsuit brought by its investors.

Travelers Casualty & Surety Co. of America filed a notice of voluntary dismissal in the U.S. District Court for the Northern District of Illinois on Thursday.

The insurer sued in June, asking the court to rule that it had no duty defend or indemnify B.C. Ziegler & Co. under a directors and officers liability policy.

In the underlying case, investors in bonds issued to finance the development of a sports complex alleged that Ziegler, which underwrote the ...