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The Insurer: Court rules Verizon can recover $24mn in defence costs from insurers

February 26, 2021·Media Coverage·less than a minute

A Delaware court has ruled that Verizon’s insurers including AIG should cover $24mn defence costs for litigation related to the 2008 spinoff of its landline business.

 The dispute arose out of litigation related to the 2008 sale of Verizon’s landline business to FairPoint Communications, which eventually resulted in Verizon agreeing to a $95mn settlement in 2014. 

This week the Delaware Superior Court ruled on Verizon’s motion for partial summary judgment on defence costs related to the underlying litigation. The ruling leaves open the door for Verizon, represented by Cohen Ziffer Frenchman & McKenna, to pursue coverage for the actual $95mn settlement from the insurers. 

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