Zhang Ruling Yanks Insurer Shield Against UCL Claims

Law360, New York (August 2, 2013, 8:06 PM EDT) -- In a landmark ruling, the California Supreme Court held Thursday that policyholders can accuse insurance companies of false advertising and other violations of the state's expansive unfair competition law, inviting more class actions and creating a new avenue for plaintiffs to score injunctions, refunds of premiums and attorneys' fees.

The decision ends confusion over the implications of the California high court's ruling in Moradi-Shalal v. Fireman's Fund Insurance Cos., which forbade private parties from targeting insurers for violations of the Unfair Insurance Practices Act and left...
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