AIG Unit's Failure To Defend Yahoo Was Bad Faith, Jury Says

Law360 (May 22, 2019, 10:29 PM EDT) -- A California federal jury found Wednesday that an AIG subsidiary acted in bad faith when it failed to cover Yahoo Inc.'s costs to defend a consolidated class action accusing it of unlawfully scanning customers' emails.

The verdict against AIG unit National Union Fire Insurance Co. of Pittsburgh, Pa., followed a five-day trial before U.S. District Judge Edward J. Davila of the Northern District of California, who had ruled last year that the insurer breached its duty to defend Yahoo against the consolidated litigation launched in the wake of the email scanning scandal.

Based on its conclusion that National Union's refusal to defend...

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