American International Group (AIG) has settled its legal dispute with Dellwood, a new excess and surplus insurance firm founded by former AIG executives. This settlement comes after a lawsuit that began in April 2024, when AIG accused Dellwood and its founders—Michael Price, Kean Driscoll, and Thomas Connolly—of stealing trade secrets and violating employment contracts.
The settlement was reached on May 17 and was officially filed in federal court in New Jersey on May 22. In this filing, both parties confirmed that AIG’s lawsuit has been voluntarily dismissed with prejudice, meaning it cannot be refiled, and neither side will pay the other’s legal fees.
While the specific terms of the settlement remain confidential, the legal battle highlighted AIG’s concerns about competition from Dellwood, which received over $250 million in backing from various investors, including RenaissanceRe and PartnerRe. AIG had sought damages and an injunction to prevent Dellwood from operating, viewing it as a direct competitor.
Initially, AIG’s lawsuit included claims against the three former executives, but AIG later dropped those individual claims while still pursuing action against Dellwood. A judge had previously allowed some of AIG’s allegations to move forward, particularly those regarding misappropriation of trade secrets.
Dellwood countered by arguing that AIG was trying to monopolize the experience and knowledge of its former employees and that the claims were baseless. A settlement conference was scheduled for May 1, leading to the agreement reached later that month.
This resolution marks a significant moment for both companies, allowing Dellwood to continue its operations without the shadow of AIG’s lawsuit looming over it.