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ARTICLE · 05 JULY 2023

Lit Alerts — June 2023

Arnold & Porter
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Earlier this month, the U.S. Court of Appeals for the Seventh Circuit unanimously affirmed a decision by a lower court that an insurer must defend an IT company against two putative class actions alleging...

United StatesLitigation, Mediation & Arbitration

Insurance: Ambiguous Policy Obligates Insurer to Defend IT Company Against Privacy Class Actions

Earlier this month, the U.S. Court of Appeals for the Seventh Circuit unanimously affirmed a decision by a lower court that an insurer must defend an IT company against two putative class actions alleging violations of the Illinois Biometric Information Privacy Act (BIPA) from the IT company's sale of Clearview AI facial recognition data to the Chicago Police Department. In Citizens Ins. Co. of America v. Wynndalco Enterprises LLC, the three-judge panel found "intractably ambiguous" the insurance policy's catch-all provision in its violation-of-statutes exclusion. Applying "well-established canon," the court construed the ambiguity against the insurance company and in favor of the insured.

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