ARTICLE · 05 JANUARY 2023

California Supreme Court Boosts Policyholders Seeking Coverage For Privacy Class Actions

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In a recent opinion, the California Supreme Court ruled in favor of California-based tech giant Yahoo in a multiyear legal battle with the National Union Fire Insurance Company of Pittsburgh, Pennsylvania.

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In a recent opinion, the California Supreme Court ruled in favor of California-based tech giant Yahoo in a multiyear legal battle with the National Union Fire Insurance Company of Pittsburgh, Pennsylvania. The insurer had refused to defend Yahoo against five class action lawsuits alleging Yahoo violated provisions of the Telephone Consumer Protection Act (TCPA) by sending unsolicited spam "robotext" messages. Yahoo settled some of the claims and sought to recover defense costs from National Union under a series of commercial general liability (CGL) policies Yahoo purchased between 2008 and 2012.

The policies provided coverage for injuries "arising out of ... [o]ral or written publication, in any manner, of material that violates a person's right of privacy." The parties also had negotiated an endorsement removing an exclusion for claims arising under the TCPA.

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