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Global Hawk Legal Actions

Global Hawk Insurance Company Risk Retention Group (Global Hawk) was placed in liquidation on June 8, 2020, by order of the Vermont Superior Court for Washington County. The Court appointed the Commissioner of the Vermont Department of Financial Regulation as Liquidator. The Liquidator is vested with title to all the property, contracts, and rights of action of Global Hawk and he is authorized to, among other things, institute actions to collect moneys due and claims belonging to Global Hawk and to prosecute any action on behalf of its creditors, members, policyholders or shareholders against any officer of Global Hawk or any other person.

Liquidator’s RICO Lawsuit

Upon investigation of the circumstances surrounding Global Hawk’s insolvency, the Liquidator determined to bring suit against Jasbir S. Thandi, Global Hawk’s former President and Treasurer; Global Century Insurance Brokers, Inc. (GCIB), an insurance agency Mr. Thandi controlled; Jasprit S. Padda, Global Hawk’s former investment advisor; and QuantBridge Capital, LLC (“Quantbridge”), Mr. Padda’s advisory firm. On October 30, 2020, the Liquidator filed a complaint against Mr. Thandi, Mr. Padda, GCIB, and QuantBridge in the United States District Court for the District of Vermont (Civil Action No. 2:20-CV-173).

Liquidator’s Lawsuit against Crowe LLP

Prior to Global Hawk’s liquidation, the Department of Financial Regulation, the Company’s independent directors, and others relied on the accuracy of Global Hawk’s audited financial statements.  Those audited financial statements contained material misstatements indicating that Global Hawk was solvent when this was incorrect.  The Liquidator believes that material misstatements in the 2016, 2017, and 2018 audited financial statements would have been identified and brought to the Department’s attention in a timely manner if Global Hawk’s auditor, Crowe LLP, had exercised due care in its audits, and that this would have avoided significant harm to Global Hawk, its members, and creditors.  On October 26, 2021, the Liquidator filed a complaint against Crowe, LLP in the Vermont Superior Court, Washington Unit (21-CV-03350).  Crowe removed the matter to the United States District Court for the District of Vermont on November 22, 2021 (2:21-CV-273).