A New Jersey-based insurance company has sued the bankrupt bottled water maker Le-Nature’s Inc. and its former CEO, alleging that the executive lied in an application for a policy meant to protect him from legal costs.
Federal Insurance Co. filed the lawsuit last Friday in U.S. Bankruptcy Court against the company and its founder and former CEO, Gregory Podlucky of Ligonier, Pa.
Le-Nature’s was forced into bankruptcy last year after a judge ruled that Podlucky and other directors may have engaged in criminal conduct by misreporting financial information. A federal investigation is under way, but no charges have been filed.
Federal Insurance alleged that Podlucky lied about his company’s finances when he applied for a policy meant to shield him from legal costs incurred by lawsuits over his errors or wrongdoing. The insurance company agreed to pay up to $7.5 million to defend Podlucky.
Podlucky’s attorney did not immediately respond to a message seeking comment on Saturday.
Information from: Pittsburgh Tribune-Review, http://pghtrib.com
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