AIG Needn't Cover Talbots In Wage Abuse Suit

Law360, New York (October 2, 2017, 6:21 PM EDT) -- AIG does not have to cover a proposed class action against The Talbots Inc. for alleged labor violations, because an "employment practices violations" exclusion clearly applies in this instance, a Massachusetts federal court ruled Friday in dismissing the case.

Talbots, a womenswear retailer, had been sued in California state court in 2015 by Ricardo Lopez and others for allegedly engaging "in a uniform policy and systematic scheme of wage abuse against their" employees in the state.

At the time Talbots held a "management liability for private companies" policy with AIG Specialty Insurance Co. and sought coverage under the policy's section covering...

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