In April, AIG sued Dellwood shortly after its inception, alleging “unlawful misappropriation” of trade secrets by the ex-executives who founded the new business. As noted by AM Best, the lawsuit was filed against Dellwood and former AIG colleagues Thomas Connolly, Kean Driscoll, and Michael Price.
AIG claimed Price and Driscoll, who left on June 30, 2023, and March 3, 2024, respectively, had breached noncompete agreements still in effect when Dellwood was set up.
Lifting the lid on the decision to dismiss, AIG’s camp said in a recent US District Court in New Jersey filing: “While AIG disputes that its claims against the former executives are arbitrable, it is dismissing those claims to avoid unnecessary delays and costs from motion practice, and to ensure that AIG’s claims against Dellwood are adjudicated in public and in the proper venue for this commercial dispute – the District of New Jersey.”
It was reported that the trio sought confidential arbitration, which could impact the progress of the case against their company.
AIG, meanwhile, highlighted that the noncompete agreements provided significant consideration to Price and Driscoll, who supposedly breached them by soliciting Connolly. The latter was AIG’s chief financial officer of North American general insurance before he was snapped up to serve as Dellwood CFO.
Connolly was allegedly used as a “secret agent” before he left AIG by having confidential company information passed on to his personal email while he solicited colleagues to move to the new firm.
Earlier this year, Dellwood announced its launch with more than $250 million in funding.
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