AIG’s Legal Proceedings: A Detailed Update
A federal judge in Newark, New Jersey, has dismissed three out of five claims brought forward by American International Group Inc. (AIG) against the startup Dellwood Insurance Group LLC, which was established by three former AIG executives.
Judge Evelyn Padin from the District of New Jersey has ruled in the case American International Group Inc. et al. v. Dellwood Insurance Group LLC that AIG did not adequately substantiate its allegations of tortious interference with contract, aiding and abetting a breach of fiduciary duty, and violating the U.S. Computer Fraud and Abuse Act through unauthorized access to AIG’s computers. However, the ruling leaves room for these allegations to be amended.
The judge has permitted AIG’s claims of violating the Defend Trade Secrets Act and unfair competition to continue in court.
AIG initiated legal action against Dellwood and its founders Michael Price, Kean Driscoll, and Thomas Connolly in April 2024. The lawsuit alleged that Mr. Price, the former CEO of North America General Insurance at AIG, along with Mr. Driscoll, the former chief underwriting officer, breached their employment agreements by establishing the startup, which launched in March 2024. Additionally, AIG accused Mr. Price and Mr. Driscoll of illicitly utilizing its proprietary information to recruit Mr. Connolly, who was serving as the chief financial officer of North American Insurance, to join their venture.
In May 2024, AIG voluntarily withdrew its claims against the individual former executives. Subsequently, Dellwood filed a motion to dismiss the lawsuit in July.
As of now, representatives from the involved parties have not provided comments regarding the court’s decision.
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