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The malpractice carrier for disbarred attorney Scott Rothstein will pay $950,000 to settle a lawsuit filed by the trustee overseeing the bankruptcy case involving his former law firm.

The settlement approved Wednesday by U.S. Bankruptcy Judge Raymond Ray ends a dispute between Carolina Casualty Insurance and the bankruptcy trustee for Rothstein’s defunct law firm, Rothstein Rosenfeldt Adler.

The trustee sued the Jacksonville-based insurer, which provided malpractice coverage to the law firm, after the company refused to pay any claims on the basis of fraud, claiming Rothstein lied on the initial application.

The settlement falls “substantially” below the limits of the insurance policy, but litigating the suit would have been costly, lengthy and risky, said the trustee’s lawyers in their settlement proposal.

Rothstein, once a political power broker and philanthropist, is serving a 50-year sentence for masterminding a $1.2 billion Ponzi scheme from his opulent Fort Lauderdale office.

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