Sedgwick LLP has asked a federal judge to toss out a $200 million malpractice case filed against the firm in the fallout from a failed Ponzi scheme.

The receiver to Medical Capital Holdings Inc., a purported medical-receivables purchasing firm that turned out to be a $1 billion fraud, has insisted that Sedgwick, the company's lending counsel, caused investor losses by failing to alert its client to more than a dozen unauthorized loans it was making.

Sedgwick has won dismissal of some of the receiver's claims. During a hearing on Monday, U.S. District Judge Carter of the Central District of California heard arguments over whether the rest of the claims should be thrown out on summary judgment before trial, which is scheduled to begin on March 3. He is set to hear additional arguments on Tuesday morning.