English Court Says Grant Thornton Is Covered For Parmalat Collapse

LONDON - As an innocent co-insured, Grant Thornton International is not barred from obtaining professional liability coverage for securities class actions arising from the 2003 Parmalat collapse, the English House of Lords ruled March 12. Brit Syndicates Ltd. v Grant Thornton International, No. [2008] UKHL 18 (Eng. Hse of Lords).

In overturning an English Court of Appeal ruling, the court held that a co-insured's breach of warranty does not allow the insurers to avoid the policy ab initio as to GTI.

GTI, a not for profit umbrella corporation based in Illinois, managed and maintained firms that operated under the Grant …