Marketing Co. Seeks Coverage For Hidden Fee Actions

Law360, New York (December 19, 2011, 7:18 PM EST) -- Clarus Marketing Group LLC sued Philadelphia Indemnity Insurance Co. in California federal court Friday, seeking coverage under a professional liability policy for class actions claiming the marketing company surreptitiously enrolled consumers in a membership program that cost up to $20 a month.

According to the complaint, Philadelphia Indemnity has repeatedly refused to cover class actions attacking Clarus for charging consumers' credit and debit cards from $9 to $20 per month after they clicked on an offer for free shipping on one of the many websites owned...
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