Calif. Seeks $3 Billion in Executive Life Case

Credit Lyonnais and other defendants accused of committing fraud in the 1991 purchase of a failed life insurer should be ordered to pay California as much as $3.03 billion, the state’s Insurance Department said in a court filing.

About 340,000 Executive Life policyholders lost billions of dollars when insurer Executive Life failed in the early 1990s. The state’s lawsuit accuses France’s sixth-largest bank and affiliates of conspiring to hide ownership of Executive Life assets they bought from court receivership. State law bars foreign banks from owning California insurers. Federal prosecutors also are investigating.

Credit Lyonnais declined to comment.