The Firm represents MLMIC Insurance Company (“MLMIC”), one of the largest New York medical malpractice insurers, and a member of the Berkshire Hathaway Group of Insurance Companies. In 2018, MLMIC went through a demutualization process, and became a stock company, and its stock was simultaneously purchased by a subsidiary of Berkshire Hathaway in a pre-arranged sale, for approximately $2.5 billion dollars. Thereafter, certain former policyholders of MLMIC sued it for breach of fiduciary duty and misrepresentation, contending that had MLMIC advised them of a purported secret “plan” to sell itself to Berkshire Hathaway, these former policyholders would not have left MLMIC, and would have received more of the demutualization proceed payments made to MLMIC’s former policyholders. On the eve of trial, the Firm prevailed on MLMIC’s appeal of the trial court’s denial of MLMIC’s motion to dismiss the Complaint. The Appellate Division, Second Department, dismissed the Complaint, holding that even if everything plaintiffs alleged were true, plaintiffs have no legitimate claim against MLMIC as a matter of law.
A copy of the appellate court’s decision is available here.