One-time accounting giant Arthur Andersen cannot recover $25 million in insurance coverage for its freelance settlement of $231 million with retirees who lost pensions in the firm’s demise, a federal appeals court has ruled.

The 7th U.S. Circuit Court of Appeals decision puts companies on notice that they cannot assume an insurer will consent to settlements, or that insurance policies covering fiduciary breaches can be stretched to cover a contract dispute.

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