Intel Files $50M Suit Against Insurance Company
Intel has filed a $50 million lawsuit against American Guarantee and Liability Insurance, alleging breach of contract. In a suit filed last week, Intel claims the insurance company’s failure to pay for legal defence in antitrust suits filed by AMD is a breach of contract.
According to the suit, Intel purchased three separate insurance policies to cover lawsuit costs between April 2001 and April 2002: a $16 million policy from Old Republic Insurance Company, a $50 million policy from AGLI to cover total defense or indemnity coverage, and a third $50 million policy from XL Insurance America. According to PCW, Intel exhausted the ORIC and XL Insurance policies but AGLI failed to cover further legal costs.
While Intel is adamant the company never coughed up the cash, AGLI maintains (in a countersuit filed in Delaware) that the company has yet to receive all of the appropriate documentation needed to assess Intel’s claim.
PCWorld reports that Intel is seeking $50 million and additional damages from the AGLI and has asked the court to rule that AGLI has a duty to cover litigation costs.
We’ll keep an eye on this and let you know how it pans out. FYI, the Intel/AMD trial is scheduled for February 2010. Check out PCWorld for the full story on Intel’s claim against AGLI.