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Policyholders Beware: The Risks of Multi-District and Class Action Treatment of COVID-19 Insurance Claims

May 4, 2020, Covington Alert

In recent weeks, plaintiffs’ law firms that do not specialize in insurance coverage have filed requests to consolidate coronavirus-related insurance lawsuits into a single, federal multi-district litigation (MDL) proceeding, or into state or federal court class actions. The premise of these efforts is that coronavirus-related property and business interruption insurance claims, the insurance policies that apply to them, and governing law are broadly the same across the nation, so policyholders will be better served, and efficiencies will be achieved, from consolidated or class action litigation. That premise warrants closer examination.

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