AIG Files Amended Suit Against Former Execs, Dell-Insurance
American International Group (AIG), along with its affiliated companies, has taken a significant legal step by filing an amended lawsuit against Dellwood Insurance Group, a firm initiated by several of AIG’s former executives. The suit, lodged on July 10 in the U.S. District Court for the District of New Jersey, marks the latest chapter in a legal saga that began in April, shortly after Dellwood publicly declared its inception.
The core of AIG’s legal argument revolves around its intentions to “stop and obtain redess and compensation for Dellwood’s ongoing misconduct.” This misconduct, according to AIG, includes the alleged improper acquisition and use of AIG’s trade secrets and confidential business information.
The revised legal filing comes with clarifications on AIG’s decision to remove Michael Price, Kean Driscoll, and Thomas Connolly from the lawsuit as individual defendants. Price and Driscoll have assumed top management roles at Dellwood, serving as CEO and Chief Underwriting Officer (CUO), respectively, while Connolly has been appointed as Dellwood’s Chief Financial Officer (CFO).
Dellwood, envisioned by its founders to serve the property/casualty (P/C) wholesale broker market, particularly focusing on small and mid-sized enterprise risks, directly rivals AIG’s excess and surplus lines insurers. Before joining Dellwood, Price, Driscoll, and Connolly held significant positions within AIG, contributing to the strategic direction and financial management of the company’s North America General Insurance division.
AIG initially pursued claims against these individuals based on what it asserts was “strong evidence” of their contravention of contractual and fiduciary duties. However, upon the trio’s indication of their preference for arbitration—a move that could potentially delay legal proceedings against Dellwood—AIG opted to dismiss these personal claims to avoid protracted legal battles and to focus on the broader allegations against Dellwood itself.
In response to these developments, Dellwood has consistently refuted AIG’s claims, arguing that the allegations lack a factual foundation. Following AIG’s adjustment of its lawsuit, Dellwood attempted to have the case dismissed outright. While this motion was not granted, the court has now provided Dellwood until the end of July to formally respond to AIG’s amended complaint.
AIG’s allegations are grounded in accusations that Price, Driscoll, and Connolly exploited their intimate understanding of AIG’s operations, strategies, and client relationships to establish Dellwood. The complaint elaborates that Dellwood’s business model, ostensibly built on “AIG’s know-how, personnel, and confidential information,” constitutes an unfair competitive threat to AIG, particularly in the excess and surplus lines insurance market.
Furthermore, AIG charges that Price and Driscoll breached their employment contracts by engaging in competitive activities against AIG, while Connolly is accused of soliciting AIG employees and acting as a “mole and double agent” for Dellwood during his tenure at AIG. The latter claim includes allegations that Connolly redirected confidential AIG information to his personal email, thereby undermining the company’s competitive position.
As the legal battle unfolds, the industry watches closely, recognizing the case’s potential implications for corporate loyalty, competitive conduct, and the protection of trade secrets in the highly competitive insurance sector.
