OTHER NEWS - Oct. 22, 1991
From Times Staff and Wire Reports
American Investors Sue Lloyd’s: Sixty-four American investors in Lloyd’s of London filed a racketeering lawsuit that accuses the British insurer of securities fraud. The plaintiffs allege that the methods by which Lloyd’s raises capital in the United States are “sophisticated yet unlawful” and that they face up to $9 million in losses because the firm hid from them the true risk of investing in its underwriting syndicates. The civil action seeks a court’s finding that investments in Lloyd’s underwriting syndicates are securities and therefore subject to regulation by the U.S. Securities and Exchange Commission.
