Insurers Must Help Cover $267M Deal Loss, Package Co. Says

Law360 (September 24, 2019, 6:34 PM EDT) -- Packaging manufacturer Novolex Holdings LLC has accused four of its representations and warranties insurers of wrongly refusing to cover part of the $267 million the company claims it overpaid for a rival that failed to disclose it had lost a large chunk of business.

In a complaint filed in New York state court on Friday, Novolex — a Carlyle Group portfolio company — alleged that the carriers have unjustifiably declined to honor their coverage obligations under a $50 million excess layer of the company’s representations and warranties insurance, or RWI, policy.

Novolex bought the policy in question, which consists of four...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS