A bankruptcy court judge has approved up to $1 million in insurance payments to help cover defense costs for two former executives of Furniture Brands International, Furniture Today reported on Tuesday. Bankruptcy Judge Christopher S. Sontchi authorized the American International Group and National Union Fire Insurance Company of Pittsburgh to advance the funds for future legal expenses for former FBI Chairman and CEO Ralph Scozzafava and Vance Johnston, former senior vice president and chief financial officer. The funds are part of up to $15 million in coverage that the executives purchased prior to Furniture Brands International's chapter 11 bankruptcy that was filed Sept. 9. The policy is aimed at helping defray legal and other related costs that are associated with the shareholder lawsuits filed in August that allege that the company failed to disclose information about its true financial condition. These suits could be consolidated into a single class-action complaint.
