International insurer American Worldwide Group (AIG) has reached an out of courtroom settlement of its authorized dispute with the surplus and surplus insurance coverage agency Dellwood that was began by former AIG executives.
In a submitting in federal district courtroom in New Jersey on Might 22, AIG and Dellwood stated they reached a settlement on Might 17 and AIG’s lawsuit has been “voluntarily dismissed with prejudice and with out prices and/or attorneys’ charges to any celebration as towards another celebration. ”
Particulars of the settlement weren’t disclosed.
The authorized battle started in April 2024 shortly after former AIG executives — Michael Worth, Kean Driscoll and Thomas Connolly — launched their very own E&S insurance coverage holding firm, Dellwood, in New Jersey. In April 2024 AIG sued the three and the brand new firm alleging illegal misappropriation of AIG’s commerce secrets and techniques and confidential data, violations of employment contracts, and unfair competitors.
AIG noticed Dellwood as instantly aggressive with AIG’s personal E&S operations. AIG sought injunctive aid and damages.
Dellwood acquired greater than $250 million in capital and was backed by RenaissanceRe, PartnerRe, Starr Insurance coverage, Central Insurance coverage, and a bunch of particular person buyers for wholesale brokers within the small- and middle-enterprise E&S market.
AIG later dropped the former executives from the lawsuit however an amended grievance continued to call Dellwood Insurance coverage. Since then, AIG and Dellwood have fired forwards and backwards over whether or not the go well with needs to be allowed to proceed.
On March 28, a federal judge allowed the a number of the claims in AIG’s lawsuit to proceed. Choose Evelyn Padin in U.S. District Court docket for the District of New Jersey dominated AIG might go forward with allegations of misappropriation of commerce secrets and techniques and unfair competitors by Dellwood. Padin dismissed with prejudice AIG’s allegations of tortious interference, aiding and abetting breach of fiduciary obligation, and laptop fraud abuse.
AIG Can Continue Trade Secret Theft Allegations Against Dellwood
On the matter of taking commerce secrets and techniques, AIG was allowed to proceed with claims that former worker Thomas Connolly – now with Dellwood as chief monetary officer – acted as a “double agent” for Dellwood whereas nonetheless employed with AIG.
Dellwood had countered the lawsuit by arguing that AIG shouldn’t be allowed to say a “monopoly on the expertise and basic data” of its staff nor ought to or not it’s allowed to stop Dellwood from doing enterprise by “throwing round its weight with ginned-up claims,” particularly after dropping claims towards three of its executives who have been all former AIG staff.
The 2 reached their settlement out of courtroom on Might 17.
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