Litigation

The U.S. Supreme Court has opened the door for plaintiffs to file more class-action lawsuits in a case involving Allstate Insurance Company, ruling that some litigation barred by state law can be brought in federal courts.

Whether you're going under a surgeon's knife or hiring an attorney to take a business contract dispute to court, there are risks of unintended outcomes, but until recently you couldn't buy insurance to cover them.

A federal appeals court in Chicago has ruled that ACE American Insurance Co. does not have to pay $1.62 million in defense costs for a company that sold lead-tainted toys from China.

A federal judge in New Orleans has awarded $2.6 million in damages and repair costs to seven Virginia families that sued the manufacturer of Chinese drywall material.

Sentencing dates have been set for a former top officer of the ACORD Corp. insurance standards-setting organization and an accomplice who pled guilty to bilking the firm out of more than $1 million.

Federal agencies are advising homeowners that "problem drywall," which has sparked thousands of claims, should be replaced along with other components the drywall may have corroded.

The U.S. Supreme Court, in ruling on what qualifies as a class action, has reinstated a suit that accuses Allstate of routinely refusing to pay interest when it is late with a benefit payment.

Across all industries, the total number of federal class action lawsuits filed dropped by 21 percent last year, with financial services firms continuing as the favorite target, a consulting firm reported.