information about registering your interest in the class action is available here:
https://www.iagclassaction.com/OverviewQuinn Emanuel intends to file class action proceedings on behalf of shareholders against Australia's largest general insurer, Insurance Australia Group Limited (ASX: IAG) (IAG) for breaches of its continuous disclosure obligations and for misleading and deceptive conduct.
The claim arises out of IAG's failure to update its policies that relied upon legislation - which was repealed in 2016- to underpin its intention to exclude business interruption cover in its policies in relation to "quarantinable diseases".
Having failed, for half a decade, to amend its policies (issued by its brands, including CGU, NRMA and WFI)to reflect the current legislation, IAG nonetheless informed the market that, because it intended to exclude pandemic cover, the courts would find in its favour; and whatever the outcome in the court, its conservative provision for COVID-19 related business interruption claims was adequate.
As was always likely, the NSW Court of Appeal decided, unanimously, that the pandemic exclusion clauses were ineffective. The High Court of Australia refused the insurers' application for leave to appeal.
In response to the judgment, IAG announced:
1. A post-tax provision of $865 million to cover potential business interruption claims related to COVID-19; and
2. a $750 million snap capital raising to address the $865 million business interruption provision.
Following these announcements on 20 November 2020, IAG's share price fell materially.
You are eligible to register your interest in the IAG Shareholder Class Action if you meet the following conditions:
1. You held or purchased IAG shares between 11 March 2020 and 20 November 2020; and
2. You still held one or more IAG shares between 11 March 2020 and 20 November 2020.
There is no need for you to have sold your IAG shares to register.
(20min delay)