Vizio Accuses Insurers of Failing to Defend $17 Million Privacy Case

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Two years after agreeing to pay $17 million to settle a landmark privacy case, TV maker Vizio is back in court, accusing two insurers of failing to defend the suit.
Vizio filed suit against Navigators Insurance Co. and Arch Insurance Co. on Thursday, accusing both of wrongfully denying coverage. The lawsuit is particularly harsh about Navigators, accusing the firm of “despicable” conduct that hampered the Vizio’s ability to defend itself. The suit seeks $10 million from Navigators alone.
Vizio faced dozens of lawsuits following a November 2015 report in ProPublica, which revealed that the TV maker was selling data about customers’ viewing habits. The firm ultimately agreed to a $2.2. million settlement with the Federal Trade Commission in February 2017, under which it agreed not to track such data without an affirmative opt-in from customers.

Vizio sought to dismiss the class action claims, which were consolidated in a case in Santa Ana, Calif.. But Judge Josephine Staton twice denied that motion, forcing Vizio into a costly settlement in October 2018.
The insurance suit offers a some behind-the-scenes detail about the workings of that case. The suit states that Chubb, a.k.a. Federal Insurance Co., paid out millions to defend the case and fund the …

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