AIG Specialty Insurance Co. is suing ABC News over its settlement with Beef Products Inc. regarding ABC’s “pink slime” reports. AIG Specialty Insurance is one of the insurers for ABC’s parent company, the Walk Disney Company. AIG is suing Disney over its insistence that its settlement with BPI, which cost Disney $177 million, after the amounts covered by insurance, is not, in fact, covered by its policy with AIG.
Meat industry publication Meatingplace reports AIG said that its policy specifically excludes coverage for legal claims that allege “malice,” which BPI’s product defamation lawsuit did include.
Court documents outline a series of meetings between AIG and Disney over the summer, seeking to hammer out an agreement. By filing a lawsuit, AIG is seeking to prevent Disney from pursuing coverage from the company through arbitration.
The lawsuit was filed in the New York State court system.
From the National Association of Farm Broadcasting News Service.