Continental Off Hook In Trade Secrets Suit: 5th Circ.

Law360, New York (July 8, 2011, 5:23 PM EDT) -- Continental Casualty Co. and Sentry Insurance were not obligated to cover a nearly $14 million jury verdict against a printing company and its employee for stealing trade secrets from a competitor, the Fifth Circuit affirmed Thursday.

In affirming that the insurers did not have to defend the suit or pay the judgment, the Fifth Circuit ruled Sentry's policy coverage for “advertising injury” did not apply to the trade secret fight. Consequently, the Fifth Circuit found that excess insurer Continental also had no duty to pay for...
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