State appeals court says insurance must pay Kozlowski's legal fees

[JURIST] A New York appeals court has ruled that Federal Insurance, the company that insured Tyco International [corporate website; JURIST news archive] executives, must pay the legal bills for former CEO Dennis Kozlowski, who is currently on trial on charges [amended indictment, PDF] of grand larceny, falsifying business records and violating state business laws. The unanimous state Supreme Court Appellate Division [official website] did leave open the possibility that Federal could later recover some of the costs from Kozlowski. Federal's lawyers had argued that the insurance policy's "personal profit exclusion" applies because Kozlowski has been accused of enriching himself by some of his crimes, but the appeals court rejected this argument. AP has more.

 

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