Morally Hazardous Settlement Strategy: Give It To ‘Em – We’re Insured!

In the Northern District of Illinois, two insurers had to cover the $6 million settlement of a Telephone Consumer Protection Act class action, despite their claims that the insured retailer had colluded with plaintiff attorneys and negotiated an inflated settlement they knew their insurers would cover. Baker & Hostetler attorney C. Zachary Rosenberg describes the case and finds an obvious takeaway for carriers – stay involved in settlement talks – and for insureds settling TCPA disputes another lesson: Evaluate disagreements with insurers early and often.