On Tuesday Lloyd's underwriters along with Zurich Specialties London Ltd commenced proceedings in New York against class action specialists Milberg LLP. Insurers are seeking to rescind certain professional liability insurance policies issued to Milberg's predecessor firms based on material mispresentations made by the Milberg firm. When applying for the subject insurances Milberg is alleged to have declared that it was not aware of any circumstances which could lead to a claim. Insurers allege that at least four Milberg partners were involved in criminal conduct, evidenced by Milberg's resolution of a criminal indictment USA v Milberg LLP by payment of US$75m and an agreed statement of facts that records, amongst other things, the paying of 'kickbacks' to plaintiffs.

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