Former chairman Steven Davis, former executive director Stephen DiCarmine, and former chief financial officer Joel Sanders – who are already defending themselves in legal battles in several jurisdictions -- are all named in the lawsuit filed in federal district court in Des Moines, Iowa, on 14 December by Aviva Life and Annuity Company.

Bond offering

According to the AmLaw Daily, Aviva claims that it lost 45 per cent of its $35 million investment in Dewey’s 2010 bond offering ‘as a result of false and misleading statements’ by the men.
Ned Bassen, a partner with New York firm Hughes Hubbard & Reed who represents Mr DiCarmine and Mr Sanders, described the suit as ‘frivolous’. He pointed out that not naming Dewey as a defendant -- and saying that leaving the firm out because it is insolvent -- amounts to a misrepresentation of the law.
Chicago-based Kirkland & Ellis partner Kevin Van Wart, who represents Mr Davis, told the web site that ‘rather than accept responsibility for its own investment decisions and actions, Aviva has decided to use Mr Davis as a scapegoat, even though the complaint does not point to any dealings Aviva ever had with him.’

Financial health

Meanwhile, Aviva’s lawyers -- Nyemaster Goode West Hansell & O’Brien partner John Clendenin in Des Moines, and Kilpatrick Townsend & Stockton partners Helen Michael in Washington DC, and Stephen Hudson in Atlanta – are yet to respond.
An Aviva spokesman said the company was trying to recover damages after Dewey’s leaders failed sufficiently to ‘inform Aviva about the firm's financial health’.