Judge trims claims in AIG’s unfair competition dispute with E&S startup

A federal judge in Newark, New Jersey, Friday dismissed three of five claims brought by American International Group Inc. against an excess and surplus startup launched by three former AIG executives.

U.S. District Judge Evelyn Padin of the District of New Jersey said in American International Group Inc. et al. v. Dellwood Insurance Group LLC that AIG did not sufficiently allege claims for tortious interference with contract, aiding and abetting a breach of fiduciary duty, and violating the U.S. Computer Fraud and Abuse Act by accessing AIG’s computers but said the allegations could be amended.

The judge allowed AIG’s claims for violating the Defend Trade Secrets Act and unfair competition to proceed.

AIG sued Dellwood, Michael Price, Kean Driscoll and Thomas Connolly in April 2024, alleging that Mr. Price, former CEO of North America General Insurance at AIG, and Mr. Driscoll, former chief underwriting officer, violated terms in their employment agreements when they formed the startup that launched in March 2024. AIG also said Mr. Price and Mr. Driscoll unlawfully used its proprietary information when recruiting Mr. Connolly, who was then chief financial officer of North American Insurance, to join them.

The insurer voluntarily dismissed its claims against the former executives in May 2024. Dellwood moved to dismiss the lawsuit in July.

Representatives for the parties did not respond to requests for comment.