Hogan Lovells Publications | Litigation Alert | 02 December 2016
Supreme Court of the State of New York Rules That Investors Cannot Recover Investment Losses Under Insurance Law Section 3420
In the wake of the very public demise of the John Thomas Financial (JTF) investment brokerage — under circumstances reminiscent of Scorsese's Wolf of Wall Street — one jilted investor filed suit directly against JTF's former insurer, New York Marine and General Insurance Company, under one of the most important provisions of New York's Insurance Law. That investor, Todd Tuls, argued that he was entitled to recover approximately US$650,000 directly from New York Marine under Insurance Law § 3420, which permits tortfeasors' victims to recover damages from their insurers for certain types of claims. It is believed that Mr. Tuls is just one of many investors who lost substantial sums as a result of JTF's schemes.
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