Lazare Kaplan Sues its Insurers for $640 Million



Lazare
Kaplan
announced Thursday that in a federal lawsuit filed on Monday, May
17th, it sued various Lloyds of London syndicates and European insurers for
$640 million in damages arising out of the disappearance of diamonds that were
insured by the defendants, including consequential damages.

The lawsuit alleges that the insurers breached two “all risk” New York property
insurance policies, and an Agreement for Interim Payment under which the
insurers made a non-refundable interim payment of $28 million to Lazare Kaplan
in January of this year. After making the $28 million payment, the insurers
abruptly reversed course and refused to acknowledge coverage or to pay any
covered losses under the policies.