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Theft Insurer Must Face $5M Suit By Gambling Site Backer


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Theft Insurer Must Face $5M Suit By Gambling Site Backer
Law360 (February 18, 2021, 8:43 PM EST) -- A Minnesota federal judge ruled Thursday that Hiscox Insurance Co. cannot dodge Cumulus Investors' suit accusing it of breaching a $5 million employee theft policy, finding that Cumulus sufficiently argued it meets the policy's coverage since it established that the employees who scammed it worked for an affiliate company.
Cumulus alleges it was scammed into losing over $17 million through the thefts and forgeries of workers at GigaMedia Corp., a mahjong and poker site in which Cumulus is a major shareholder. Hiscox did not cover the millions in losses since the scam was carried out by Giga workers, who the insurer...

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