Lloyd’s Insurers Settle Lender Suit Over FTC Defense Costs

Lloyd’s insurers said they reached a settlement with a Southern California small business lender and its founder who were seeking coverage for defense costs in a lawsuit brought by the Federal Trade Commission.

The settlement with Seek Capital LLC is being finalized and the parties plan to file a joint motion for entry of consent judgment within 30 days, the insurers said in a Tuesday filing in the US District Court for the Central District of California.

• The insurers sued Seek and its founder in April 2025, arguing that the FTC lawsuit wasn’t covered under a professional liability policy issued ...