Microsoft Insurer Sues to Avoid Covering Antitrust and Class Action Costs

The Zurich American Insurance Company, primary insurer for Microsoft, has filed a lawsuit in federal court in Washington to avoid covering the company's mounting legal bills associated with antitrust and class action cases. Microsoft's policy is designed to cover bodily injury, property damage, and personal injury, but antitrust insurance is a far more complicated and less common type of insurance, which Microsoft does not have. The dispute arises over the company's request to be reimbursed for the cost of defending itself against 138 class action lawsuits in 38 states.

Key Takeaways:

• Microsoft's primary insurer, Zurich American Insurance Company, has filed a lawsuit in federal court to avoid covering the company's legal costs associated with antitrust and class action cases.
• The policy in question covers bodily injury, property damage, and personal injury, but not antitrust cases, which are a less common and more complicated type of insurance.
• Microsoft is seeking reimbursement for the cost of defending itself against 138 class action lawsuits in 38 states, totaling $46 million.
• The company's policy specifically excludes antitrust cases, which Zurich's attorney claims is not what was agreed upon under the existing policy.
• Microsoft spokesman Jim Cullinan claims the company is seeking reimbursement for a service that is explicitly covered under their policy, which includes legal liability coverage.
• The lawsuit has sparked controversy, with some arguing that Microsoft is unfairly shifting its costs to Zurich.

Statistics:

• 138 class action lawsuits in 38 states against Microsoft (exact number not specified in the article).
• The total cost of defending against these lawsuits is $46 million (estimated amount mentioned by Cullinan).
• 2000: the year in which the lawsuit was filed (as mentioned in the original source).
• 38: the number of states in which the class action lawsuits have been filed.

Sources:

• NB: no date mentioned in the article, only a document reference.
• Zurich American attorney Thomas W. Brunner.
• Microsoft spokesman Jim Cullinan.
• Newsbytes.com (http://www.newsbyes.com) - mentioned as a source in the article, with a date of 20000421.