Jenner & Block

A Breath of Life for Calif. FCA Insurance Coverage

In a recent opinion, the US Court of Appeals for the Ninth Circuit overruled a district court’s determination that could have bolstered an insurer’s attempts to deny liability coverage for a wide range of fraud-based claims.  In Office Depot, Inc. v. AIG Specialty Insurance Co., the Ninth Circuit held that California law does not preclude insurance coverage for losses incurred as a result of suits brought under the California False Claims Act (CFCA).  In doing so, the court rejected the district court’s theory that all CFCA violations, even those that were merely reckless, involved intentional acts and were therefore barred from coverage. 

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