American Guarantee & Liability Insurance Co., a unit of Zurich Financial Services, AG, Schaumburg, Ill., and Intel Corp., Santa Clara, Calif., have filed countersuits over defense cost payments for an antitrust suit filed against the computer chip maker by Intel’s competitor Advanced Micro Devices Inc. (AMD), and consumers in 2005.
In the action it has filed in the U.S. District Court for the Northern District of California in San Jose, Intel is seeking at least $50 million in defense costs, according to public court documents.
American Guarantee responded by filing suit in Delaware Chancery Court, claiming that Intel failed to provide necessary information for the insurer to evaluate the claim, according to court documents. Headquartered in California, Intel is a Delaware corporation.
According to public court documents, the suits involve a $50 million excess liability policy to cover defense and indemnity coverage above $66 million.
Intel, in its suit against American Guarantee, said it has exhausted coverage totaling the $66 million threshold for defense costs. Included in that coverage was a $5 million "fronting" policy, and an $11 million retention policy from Old Republic Insurance Co. It also included a $50 million commercial umbrella policy issued by XL Insurance America Inc.
A trial date in AMD’s lawsuit against Intel is set for February 2010, reports CNET News.
Both Zurich for American Guarantee and Intel have not commented on the lawsuits.
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