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Global insurer American International Group (ÌìÃÀÍøÕ¾´«Ã½´«Ã½) has reached an out of court settlement of its legal dispute with the excess and surplus insurance firm Dellwood that was started by former ÌìÃÀÍøÕ¾´«Ã½´«Ã½ executives.

In a filing in federal district court in New Jersey on May 22, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ and Dellwood said they reached a settlement on May 17 and ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s lawsuit has been “voluntarily dismissed with prejudice and without costs and/or attorneys’ fees to any party as against any other party. ”

Details of the settlement were not disclosed.

The legal battle began in April 2024 shortly after former ÌìÃÀÍøÕ¾´«Ã½´«Ã½ executives — Michael Price, Kean Driscoll and Thomas Connolly — launched their own E&S insurance holding company, Dellwood, in New Jersey. ÌìÃÀÍøÕ¾´«Ã½´«Ã½ sued the men and their new company alleging unlawful misappropriation of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s trade secrets and confidential information, violations of employment contracts, and unfair competition.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ saw Dellwood as directly competitive with ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s own E&S operations. ÌìÃÀÍøÕ¾´«Ã½´«Ã½ sought injunctive relief and damages.

For its launch, Dellwood received more than $250 million in capital and was backed by RenaissanceRe, PartnerRe, Starr Insurance, Central Insurance, and a group of individual investors for wholesale brokers in the small- and middle-enterprise E&S market.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ later dropped the former executives from the lawsuit but an amended complaint continued to name Dellwood Insurance. Since then, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ and Dellwood have fired back and forth over whether the suit should be allowed to proceed.

On March 28, a federal judge allowed some of the claims in ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s lawsuit to proceed. Judge Evelyn Padin in U.S. District Court for the District of New Jersey ruled ÌìÃÀÍøÕ¾´«Ã½´«Ã½ could go ahead with allegations of misappropriation of trade secrets and unfair competition by Dellwood. Padin dismissed without prejudice ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s allegations of tortious interference, aiding and abetting breach of fiduciary duty, and computer fraud abuse.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ Can Continue Trade Secret Theft Allegations Against Dellwood

On the matter of taking trade secrets, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ was allowed to proceed with claims that former employee Thomas Connolly – now with Dellwood as chief financial officer – acted as a “double agent” for Dellwood while still employed with ÌìÃÀÍøÕ¾´«Ã½´«Ã½.

Dellwood had countered the lawsuit by arguing that ÌìÃÀÍøÕ¾´«Ã½´«Ã½ should not be allowed to claim a “monopoly on the experience and general knowledge” of its employees nor should it be allowed to prevent Dellwood from doing business by “throwing around its weight with ginned-up claims,” especially after dropping claims against three of its executives who were all former ÌìÃÀÍøÕ¾´«Ã½´«Ã½ employees.

The judge scheduled a settlement conference for May 1. The two reached their agreement on May 17.

Topics Lawsuits Excess Surplus ÌìÃÀÍøÕ¾´«Ã½´«Ã½