COVID-19 Coverage MDL Could Prove to Be a “Nightmare”

The task set before a Judicial Panel on Multidistrict Litigation, over whether to consolidate hundreds of lawsuits filed against insurers who have denied their policyholders’ business interruption claims, is being described as a “nightmare”.

While the insurers have stood firmly against any form of class action consolidation, 200 of the more than 400 suits filed in federal courts are already class actions. One judge on the panel expressed skepticism that a single judge would be able to efficiently navigate all claims being consolidated together, as they would have to deal with multiple insurers and insurance laws from all 50 states. One solution being entertained is to create multiple MDLs dealing with different insurers. The JPML did not indicate which way they’re leaning at the hearing, held Thursday, July 30.

The plaintiffs are represented by Burns Bowen Bair LLP, as well as attorneys from the Lanier Law Firm, DiCello Levitt Gutzler, and Daniels & Tredennick.

You can read the full story at Reuters.