AIG Ducks Office Depot's $77.5M CFCA Coverage Bid Again

Law360 (June 24, 2019, 10:58 PM EDT) -- Following a revival by the Ninth Circuit, a California federal judge again rejected Office Depot's bid to have its insurer, AIG, cover an underlying $77.5 million California False Claims Act settlement, ruling that the coverage falls outside the scope of AIG's policies and is barred under policy exclusions.

U.S. District Judge Stephen V. Wilson said that because Office Depot Inc.'s alleged wrongful acts took place before, rather than during, the relevant policy time periods, the underlying lawsuit does not trigger the AIG Specialty Insurance Co. policies. Office Depot was seeking coverage for a settlement stemming from a whistleblower's accusations that the supply giant overbilled...

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