ADVERTISEMENT
ADVERTISEMENT
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.