Haymarket Insurance Co., a unit of A-CAP, has filed a complaint against private equity firm Leadenhall Capital Partners, accusing them of fraud in dealings with Miami investment firm 777 Partners. Both A-CAP and Leadenhall have been creditors to 777, with Haymarket arguing that Leadenhall faced mounting losses beyond ties to 777 by late 2022.

The complaint against Leadenhall is the latest development in the ongoing saga around the London-based firm. Leadenhall specializes in insurance-linked investments but has faced troubles with various deals, including Friday Health Plans, Health IQ, and Reverse Mortgage Investment Trust. Founded in 2008, Leadenhall operates as a joint venture connected to Japan’s MS&AD insurance group.

According to the complaint by Haymarket, the losses were significant enough that a major Canadian pension fund withdrew a $300 million commitment, adding pressure. Leadenhall was carrying roughly $650 million in exposure across four non-777 platforms that soon entered bankruptcy, regulatory seizure, or controlled wind-down, resulting in substantial impairment.

RMIT filed for Chapter 11 in late 2022, citing rising interest rates and liquidity pressure. In 2023, Texas placed Friday Health Plans into liquidation, Georgia declared it insolvent, and Oklahoma imposed regulatory supervision. The failures reflected a pattern of underwriting missteps, capital-intensive structures, and impaired exits, leaving Leadenhall with hundreds of millions in losses.

Courts granted temporary restraining orders freezing assets tied to over $600 million in accelerated debt, as Leadenhall’s lawsuit against 777 and A-CAP alleged fraud and improper pledging of collateral. Leadenhall asked a federal judge to reject 777 Partners’ bid to block access to documents produced by a former executive, citing no right to screen third-party records.

Read more at Yahoo Finance: Lawsuit Says Leadenhall Was Already Imploding