Insurance Australia Group (IAG) Group Proceeding (Class Action)

This is a group proceeding (class action) brought on behalf of persons who acquired an interest in Insurance Australia Group Limited (IAG) shares during the period from 11 March 2020 to 20 November 2020, and suffered loss or damage as a result of the defendant’s alleged conduct.

The claim alleges that IAG made misleading and deceptive representations and breached its continuous disclosure obligations by failing to manage risk/internal controls with regards to business interruption policies (and exclusions) offered by IAG and its subsidiaries, in relation to exposure to the risk of a pandemic such as COVID-19 and paying out related claims.

The claim follows the fall in the price of IAG shares after its corrective disclosure made to the ASX on 20 November 2020, following the decision of HDI Global Speciality SE v Wonkana No. 3 Pty Ltd [2020] NSWCA 296, which found certain pandemic exclusions were not effective to exclude cover for losses.  The plaintiff and group members claim loss sustained by purchasing shares in IAG which were inflated in value due to the alleged conduct.