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More than 6,000 retail investors who lost out in the collapse of Italian dairy company Parmalat plan to sue two auditors and two banks including Citigroup for tens of millions of euros in damages , a consumer group said. The lawsuit would be the latest in a series of legal cases in Italy and the United States around the Italian food group. Somma said the small investors together owned less than 5 percent of the company’s old shares.Often dubbed “Europe’s Enron” in reference to the failed U.S. energy trading company, Parmalat collapsed in 2003 under about 14 billion euros ($21.68… Read More »Interesting Case: Parmalat retail investors to sue banks, auditors

Three pieces of legislation will be heard in the Senate Banking, Finance and Insurance committee on Wednesday, June 17, 2008. Assemblyman Jared Huffman’s AB 2800 would allow insurance companies to require drivers to install spyware in their cars that tracks speed, acceleration, location, time of day, mileage and other data. Sponsors say the bill would encourage motorists to drive less by lowering insurance rates for lower mileage. However, the consuemr group Consumer Watchdog says AB 2800 would give discounts to drivers who put black box technology in their cars, not those with low mileage.“Insurers want to know where we drive,… Read More »Agent-Broker Bill. The battle continues…

A San Diego man has been sentenced for insurance fraud. On May 21, 2008, Ramon Romo was sentenced to 180 days in San Diego Superior Court and ordered to pay more than $25,000 in restitution in addition to $680 in fines. On June 6, 2005, Romo fractured his thumb while on the job, and filed a workers’ compensation claim with his employer, NASSCO. Several months later, he added claims for back, neck and right shoulder injuries, claiming the injuries occurred at the same time as his thumb injury. In December 2005, Romo testified under oath that his additional injuries were… Read More »Workers’ Comp Fraud: Man Sentenced

Another step towards product liability insurance as a must have for manufacturers. Associated Press reports about a packaging company, Sealed Air Corp. who made a polyethylene foam, which was installed in the Rhode Island nightclub. Nightclub burned down five years ago and Sealed Air Copr. has agreed to pay $25 million to survivors and relatives of the 100 people killed, according to court papers filed Friday. Victim’s lawyers say the foam burned too easily and produced toxic gas. Ken Aurichio, a spokesman for Sealed Air, said packaging material was allegedly misused as soundproofing, and noted that it was never determined… Read More »Packaging Company related to Nightclub Fire?

A man accused of trying to firebomb an AM radio station in Duluth is to appear in court for a preliminary hearing.A court representative says 51-year-old disgruntled ex-salesman who had recently been fired (police describe) has a hearing scheduled for Wednesday morning.Chae faces two counts of possession of a destructive device, one count of first-degree arson and one count of aggravated battery.Authorities say he tried to use a molotov cocktail to set a fire at Korean Media Group on Monday. But authorities say the plan backfired when the molotov cocktail they believe he was carrying exploded and set him on… Read More »Fired Salesman Enters Georgia Radio Station with Firebomb

AIG Small Business, a unit of AIG Commercial Insurance, announced the availability of contractors pollution liability (CPL) insurance designed specifically for the needs of contractors with revenues under $10 million. Featuring limits as low as $300,000 and a minimum deductible of $2,500, CPL provides legal liability coverage for bodily injury, property damage, and environmental damage resulting from covered operations at a job site, whether performed by the contractor or a subcontractor.“Small residential builders, roofers, and other types of general contractors frequently face exposure to environmental risks associated with their work or the work of subcontractors under their management,” said Brian… Read More »AIG insurance company Offers Pollution Liability Insurance for Contractors

A federal judge ruled that families of those killed aboard Comair Flight 5191 in Kentucky may seek punitive damages in a trial set for August 4. The ruling is considered a victory for the plaintiffs.In his ruling made public June 9, U.S. District Judge Karl Forester says there was enough evidence to allow a jury to decide if the airline’s management was responsible for the Aug. 27, 2006, crash that killed 49 people at Lexington’s Blue Grass Airport.Comair has admitted its pilots made mistakes in taking off from the wrong runway, but argued it did not authorize their conduct.An attorney… Read More »Kentucky Plane Crash: Families Can Seek Punitive Damages

As the price of gasoline tops four dollars a gallon nationwide consumers who are driving less could save an average of 5 to 15 percent on their automobile insurance rates – about $47 to $142.That’s according to the Consumer Federation of America (CFA), which says that skyrocketing fuel costs could mean savings on automobile insurance as drivers react to high gas prices by using mass transportation, car-pooling, taking fewer trips to the store or curtailing their vacations.“Auto insurance rates are partially based on how much you drive and how you use your car,” said J. Robert Hunter, director of insurance… Read More »Drivers Urged to Seek Insurance Rate Relief As Gas Prices Soar

Insurance Commissioner Steve Poizner announced Olav A. Flores, 35, of Cedar Glen, surrendered himself to San Bernardino Superior Court after learning an arrest warrant was issued charging him with one count of insurance fraud for falsely claiming that his house was damaged due to the fires. A subsequent investigation revealed that the house had not been damaged. “Insurance fraud like this hurts honest consumers and overall, and it costs every man, woman and child in California $500 a year,” said Poizner.Flores submitted a homeowner’s property claim for smoke damage to the interior of his home in Cedar Glen. Flores made… Read More »California Commissioner Announces Arrest in Felony Insurance Fraud

Chatsworth Company Allegedly Underreported Payroll; Pleads No Contest to Fraud Insurance Commissioner Steve Poizner announced Cover All, Inc., a 15-year old flooring and carpet installation company headquartered Chatsworth, pled no contest to one count of insurance fraud in Los Angeles County Superior Court. On June 2, 2006, the corporation was placed on five years probation and ordered to pay $6.3 million restitution to the victim, State Compensation Insurance Fund (SCIF).The case was referred to the California Department of Insurance’s Fraud Division (CDI) by SCIF and prosecuted by the Los Angeles County District Attorney’s Office.“Fraud is a major cost-driver in California’s… Read More »California Commissioner Announces $6.3 Million Restitution in Workers’ Comp Fraud Case