Westfield Insurance Co. launched a lawsuit against Plews Shadley Racher & Braun LLP in Indiana federal court claiming its policies do not cover the firm in its fight against sanctions imposed in a False Claims Act suit.  Westfield Ins. Co. v. Plews Shadley Racher & Braun LLP, No. 12-1217 (S.D. Ind. filed Aug. 29, 2012).  In March 2012, the court imposed almost $400,000 in attorneys’ fees and sanctions against Plews Shadley and two other law firms that represented a former ITT Educational Services Inc. employee who claimed the for-profit technical institute defrauded the federal government by giving illegal bonuses to staff who pushed federal financial aid on students.  In April, the law firm sought coverage from Westfield for defense and indemnification against the sanctions, which Westfield denied.  Plews Shadley then sued Westfield in Indiana state court to obtain coverage, which was later removed to federal court.  The underlying suit was dismissed in August 2011 because the relator, a former ITT financial aid administrator, based her suit on publicly available information, not her actual knowledge.  In dismissing the suit, the court noted that the employee had not been interested in pursuing an FCA case until after she was approached by a lawyer and researched other cases for herself.