American International Group (AIG) has filed new allegations against former executive Thomas Connolly, accusing him of misappropriation of confidential information to benefit the startup Dellwood Insurance Group. This latest development is part of AIG’s ongoing lawsuit against Dellwood.
According to the filing, Connolly, who was AIG’s chief financial officer for North American general insurance at the time, allegedly emailed himself AIG’s general ledger accounts and business plans for Dellwood before his departure. On the morning of Feb. 26, Connolly used his AIG email to send a co-worker an Excel file containing business plans for Dellwood and AIG’s confidential data. This occurred three weeks before he left the company.
The filing further alleges that Connolly sent a payroll hierarchy for Dellwood, organized by function, division, and type, using his AIG email. In early March, he forwarded a to-do list for creating Dellwood to his personal account.
In May, AIG dropped a lawsuit against three former executives who founded Dellwood, accusing them of “unlawful misappropriation” of inside information. However, AIG clarified that it did not drop claims against Dellwood Insurance Group LLC.
The latest filing, dated July 10, accuses Connolly of utilizing AIG’s “U.S. Regional Investment Advisory Committee Charter” to form Dellwood’s governing committee. It also claims that Connolly neglected his transition duties and failed to report to the office during his final month at AIG.
“Dellwood’s misappropriation of AIG’s confidential information has caused and, unless enjoined, will continue to cause significant damages and irreparable harm to AIG,” the filing stated. AIG claims it has suffered losses, including revenue, business opportunities, future profits, employee morale, and goodwill.
AIG initially filed the lawsuit against Dellwood and former executives Connolly, Kean Driscoll, and Michael Price in April. The lawsuit seeks to prevent the “unlawful misappropriation” of trade secrets. Price and Driscoll, who left AIG on June 30, 2023, and March 3, 2024, respectively, are accused of violating noncompete agreements during Dellwood’s formation.
Dellwood, an excess and surplus lines insurance holding company, was launched with over $250 million in capital and backing from prominent underwriters and investors, according to BestWire. The company is dedicated to wholesale brokers, emphasizing small and middle enterprise risks.
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