Candice Cooke, Australia
Law firm Quinn Emanuel announce Insurance Australia Group Limited (IAG) Shareholder Class Action
Global law firm Quinn Emanuel has announced a shareholder class against Insurance Australia Group Limited (ASX: IAG) after they had years to fix problems with business continuity policies.
Quinn Emanuel (QE) have announced a shareholder class action against Insurance Australia Group Limited (ASX: IAG). The class action arises after IAG failed to make changes to their policies which relied upon legislation that was repealed in 2015.
IAG had formerly told the market that because it had meant to exclude pandemic cover the courts would rule in its favour; - and that whatever the outcome in court, its provision for business interruption claims of $150 mil was conservative and adequate.
The NSW Court of Appeal decided, unanimously that the exclusion clauses were ineffective. The High Court of Australia has refused the insurer’s application for leave to appeal.
Following these court outcomes, IAG disclosed the full scale of their exposure at $865 million and they immediately commenced a $750 mill capital raising.
Please visit www.iagclassaction.com for more information.