Roth Case: Malpractice insurer looks to revoke firm's policy - KWWL - Eastern Iowa Breaking News, Weather, Closings

Roth Case: Malpractice insurer looks to revoke firm's policy

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The law firm of a Waterloo attorney accused of stealing millions of dollars from clients could soon lose their malpractice insurance.

David Roth, of Hudson, worked for Gallagher, Langlas & Gallagher, LLC in Waterloo. He took his own life last year. Since then, he's been accused of depositing clients' money for personal gain. As a result, dozens of individuals and entities have filed claims against his estate.

So far, claims total around $7 million.

The firm has also been named in at least one lawsuit connected to Roth's alleged actions.

Now, the firm's malpractice insurer, Minnesota Lawyers Mutual (MLM), has filed a request to revoke their policy. According to court documents, the policy covered the firm for $4 million per claim, with a $5 million annual aggregate.

MLM wrote that the policy should be legally revoked, because they believe Roth lied on a renewal application, filed in October and November 2013.

MLM believes Roth lied when answered ‘no' to the following questions.

a. Have any malpractice CLAIMS been made against any member of the firm?

b. Has any firm member become aware of any INCIDENT which could reasonably result in a claim being made against the firm or a member of the firm?”

“In submitting the Application, Roth intended to induce MLM to issue the Policy, and intended to induce MLM to issue the Policy on terms favorable to GLG,” wrote an MLM representative in those court filings.

MLM also accuses Roth of maintaining a ‘secret bank account' at Veridian Credit Union in Waverly. At the time of his death, they believe that account held $14,399.08.

The filing asks that MLM be allowed to rescind the policy, and that they be reimbursed for their legal expenses, as well as any claims paid-out through the policy, in addition to ‘any further relief which the court may deem appropriate.'

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