Michaels' Insurer Sues Over Data Breach Coverage

Law360, New York (June 5, 2012, 4:40 PM EDT) -- Michaels Stores Inc. was hit Friday with a lawsuit by XL Insurance America Inc. that claims the insurer has no obligation to indemnify the retailer against putative class actions over the theft of financial data from stores in more than 20 states.

In a declaratory judgment complaint filed in New York state court, XL argued that its commercial umbrella liability policy does not cover the claims in the class actions, which were filed over several months in 2011. The suits allege that Michaels failed to secure...
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