In Millenium Partners, L.P. v. Select Insurance Company (24 Misc. 3d 212, 2009 WL 586127 [Sup Ct, NY County 2009] Friedman, J.), the insured sought to recover its costs of defending itself against an SEC investigation which resulted in the insured settling the matter by disgorging millions of dollars it received by market timing of mutual funds, a violation of federal securities laws. Justice Marcy Friedmann held that actions that result in the disgorgement of improperly acquired funds is not a covered loss, and that defense costs based on such actions are also not covered by the insurance policy. Therefore, under current New York law, the costs of defending the subject lawsuits are not insurable as arising from violations of federal securities laws. "If the allegations interposed in the underlying complaint allow for no interpretation which brings them within the policy provisions, then no duty to defend exists. An insurer can be relieved of its duty to defend if it establishes as a matter of law that there is no possible factual or legal basis on which it might eventually be obligated to indemnify its insured under any policy provision, and an insured may not by use of a shotgun' allegation, create a duty to defend beyond that which was anticipated by the parties when they entered into the policy contract."