Stanford faces court battle over legal fees

Jailed financier Allen Stanford and three of his former company executives are suing Lloyd's of London in a row over legal insurance.

The trio have racked up millions of dollars in legal fees as they defend themselves against charges they cheated investors out of $7bn (€5.5bn) in a massive Ponzi scheme.

An insurance policy has so far covered their legal bills. However Lloyd's is trying to have the policy voided. In return former billionaire Stanford and the ex-executives have sued Lloyd's.

The question of whether the insurer will continue paying is in the hands of US District Judge Nancy Atlas, who is holding a court hearing tomorrow in Houston on the issue.

The case, which could last up to four days, might also provide a preview of the forthcoming criminal trials.