Investor fraud lawsuit towards AXA XL subsidiary dropped
A Pennsylvania-based law firm and its attorneys have reached an agreement with AXA XL subsidiary Catlin Insurance Company to unconditionally dismiss the firm’s lawsuit against the insurer.
Dodaro Matta & Cambest PC and two of their former lawyers were sued by investors in six lawsuits filed between 2019 and 2020 alleging the law firm’s former clients – Robert Irey and Jonathan Freeze – defrauded them of their investments. Both Irey and Freeze have requested investments in Alternative Energy Holdings LLC (AEH), but according to the six complaints, Dodaro Matta & Cambest allegedly did not warn investors that Freeze was banned from securities trading in 2017.
The lawsuits also alleged that the company also failed to inform investors that AEH CEO Kevin T. Carney was guilty of grand theft and forgery in 2016, and that previous investors had raised concerns about not paying their return on investment obtain.
In return, Dodaro Matta & Cambest and the two former lawyers sued the insurer Catlin Insurance Company in February 2020 to cover the six lawsuits. The law firm claimed to have alerted Catlin on July 31, 2019 – when it learned of a possible claim from one of its investors, Michael Geller. According to the lawyers, Geller had sent AEH a letter on May 21, 2019 stating that the request to invest in the company appeared to violate securities laws and that Dodaro Matta & Cambest could be held responsible.
According to court files, Dodaro Matta & Cambest stopped representing AEH in autumn 2017.
However, Catlin had argued that the law firm and attorneys were served the suits after the policy expired by Dodaro Matta & Cambest, adding that no claims were made during the policy term to trigger coverage.
Law360 reached out to Catlin, Dodaro Matta & Cambest, and the two lawyers, but all declined to comment on the deal.