Failure to disclose a key document on insurance coverage for the Port Authority at the World Trade Center in the aftermath of the Sept. 11 terror attacks and other discovery abuses is going to cost Wiley Rein and Coughlin Duffy.

The two law firms and the company they represented, Zurich American Insurance Companies, have been whacked with $1.25 million in sanctions by Southern District of New York Judge Alvin Hellerstein, who said document destruction by Zurich employees and misleading statements by their attorneys added years and millions of dollars to the cost of prosecuting suits on behalf of people who died or were injured or suffered property loss in the 2001 attacks.

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