Michaels' Insurer Sues Over Card Data Theft Coverage

Law360, New York (February 6, 2012, 1:43 PM EST) -- Arch Insurance Co. hit Michaels Stores Inc. with a coverage suit Friday alleging it had no obligation to defend or indemnify the arts and crafts retailer in several putative class actions over theft of consumer financial data from its stores.

In a complaint in Illinois federal court, Arch alleged that no claims in a consolidated putative class action or in at least three associated cases against Michaels qualified for coverage under policies Arch issued.

The underlying actions accuse Michaels of failing to protect customers’ credit and...
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