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AIG sues former execs, new E&S insurer

AIG sues former execs, new E&S insurer


AIG sues former execs, new E&S insurer | Insurance coverage Enterprise America

The insurance coverage big says former execs engaged in “illegal misappropriation”

AIG sues former execs, new E&S insurer

Insurance coverage Information

Ryan Smith

American Worldwide Group is suing the newly fashioned Dellwood Insurance coverage Group in a bid to cease what the insurance coverage big calls “illegal misappropriation” of commerce secrets and techniques by former AIG executives who left to type the newly launched extra and surplus traces insurer.

The lawsuit was filed in opposition to Dellwood and former AIG executives Thomas Connolly, Kean Driscoll and Michael Value, in accordance with a report by AM Greatest. The swimsuit alleges that Value and Driscoll – who left AIG on June 30, 2023, and March 3, 2024, respectively, violated non-compete agreements that had been in drive through the time Dellwood was being established.

Value’s non-compete settlement barred him from competing with AIG or interfering with its buyer relationships via Sept. 30, 2023, in accordance with AM Greatest. The settlement additionally prohibited Value from soliciting AIG staff via June 30, 2024, the lawsuit alleged.

The settlement additionally included a everlasting ban on soliciting AIG’s prospects in instances the place doing so would require the use or disclosure of the corporate’s confidential info or disparaging AIG, AM Greatest reported.

Driscoll’s settlement with AIG allegedly barred him from competing with the corporate, violating his fiduciary obligation of loyalty, or soliciting AIG staff via March 3, 2024. It additionally included a everlasting ban on soliciting AIG prospects utilizing confidential info, disparaging AIG or disclosing confidential info, AM Greatest reported.

AIG stated within the lawsuit that Value and Driscoll entered into the non-compete agreements in alternate for “important consideration,” together with long-term incentive plan awards.

“On info and perception, Value and Driscoll breached their obligations to AIG lengthy earlier than their noncompetes expired,” the lawsuit stated. “Certainly, Dellwood’s personal publicly filed paperwork reveal that the Dellwood authorized entity was fashioned in Delaware no later than Dec. 28, 2023, and registered to do enterprise in New Jersey no later than Jan. 30, 2024.”

Dellwood introduced its launch earlier this month, in accordance with AM Greatest.

AIG claimed that Value and Driscoll violated their non-compete agreements by recruiting Connolly, previously the insurance coverage big’s chief monetary officer of North American common insurance coverage and now CFO at Dellwood. The swimsuit additionally alleges that in his closing month at AIG, Connolly forwarded confidential info to his private electronic mail deal with and solicited AIG staff to affix Dellwood, AM Greatest reported.

“As senior AIG executives, the person defendants had entry to confidential info that’s proprietary to AIG relating to nearly each side of AIG’s North America common insurance coverage enterprise, together with technique, finance, accounting and underwriting,” the lawsuit stated. “Defendants are utilizing AIG’s confidential info to conduct Dellwood’s enterprise.”

A spokesman for AIG informed AM Greatest that the corporate “is not going to abide” using its property to “unfairly compete.”

“AIG is looking for to halt what it believes to be defendants’ illegal misappropriation of AIG’s commerce secrets and techniques and confidential info, breaches of contract, breaches of fiduciary obligation, and unfair competitors,” the spokesman stated.

The lawsuit claims that AIG has sustained damages together with “lack of income, worthwhile enterprise, income, future income, and worker morale and goodwill,” in accordance with a Reuters report.

Dellwood informed AM Greatest that it will not touch upon lively litigation.

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