Vizio Says Arch Should Pay Its Part In Settlement To Resolve MDL, Alleging It Sold Consumer Data Without Consent

Arch, Vizio Customer Information MDL Overview: 

• Who: Vizio is arguing it was not obliged to inform its excess insurer, Arch Insurance, that its coverage with its main insurer had been used up. 
• Why: The argument stems from Arch being on the hook for $17 million of a settlement following multidistrict litigation over allegations Vizio sold consumers data without their consent.
• Where: The MDL was litigated in California federal court.

Vizio is arguing it was under no obligation to inform its excess insurer Arch Insurance Co. that its coverage with its primary insurer had been used up and that Arch would thus be on the hook for $17 million of a settlement with customers over allegations it sold their data without consent.

Arch argued in a summary judgment request that it was indeed under obligation to be notified and yet was not during multidistrict litigation against Vizio over claims that it sold the data of consumers without their consent, Law360 reports.

Arch also alleges it was never told that it would be on the hook for $17 million of a settlement that was reached following multidistrict litigation to resolve the claims between Vizio and its customers. 

Vizio, meanwhile, in its response, says it informed Arch about the litigation and was under no obligation to disclose the insurance-related information. 

“Vizio gave Arch timely notice of the smart TV litigation, and exhausted the underlying limit, triggering Arch’s policy, as of no later than Sept. 21, 2017,” Vizio wrote. “Arch’s policy does not require Vizio to have given Arch any further notice. Rather, it was Arch that failed in its obligation to conduct the reasonable investigation required by California’s insurance code.”

Arch Never Attempted Communication, Investigation, Vizio Argues

Vizio also argues that Arch never attempted to communicate with the company or do its own investigation. 

“Arch ‘monitored’ the litigation and received updates of various developments (including the ultimate settlement), but chose to remain silent in the apparent hope that Vizio would not pursue benefits,” Vizio said.

Arch has said it spent nearly $27 million on the litigation and is on the hook for the $17 million settlement; however, a judge later determined the company was not responsible for payment, Law360 reports. 

What do you think? Should Vizio have communicated better with Arch Insurance? Let us know in the comments! 

Arch is represented by Eileen R. Ridley, Dyana K. Mardon, Kimberly A. Klinsport and Jessica N. Walker of Foley & Lardner LLP.

The Arch Smart TV MDL is Vizio Inc. v. Navigators Insurance Co., et al., Case No. 2:20-cv-06864, in the U.S. District Court for the Central District of California.

Read About More Class Action Lawsuits & Class Action Settlements:

• Ancestry.com Shared Private User Information With Third Party Entity, New Class Action Alleges
• Claims That McDonald’s Illegally Stores Customer Voices at Drive-Thru Split in Class Action Ruling
• Facebook Pausing Instagram Kids Amid Pushback From Lawmakers, Parents, and Child Advocates
• Facebook To Pay $14M To Settle Anti-Discrimination Lawsuit