Lawsuit Targeting Insurance Co. Spinoff May Proceed in Calif.

SAN FRANCISCO - A lawsuit against CIGNA Corp. that alleged the company had committed fraud by transferring its asbestos liabilities to a newly created subsidiary may proceed to trial, a California appeals court has ruled. AICCO, Inc., et al. v. Insurance Company of North America, et al., No. A092096 (Calif. Ct. App., 1st App. Dist.).

The First District Court of Appeal's decision overturns a previous dismissal of the suit by the San Francisco Superior Court. In its July 10 decision, the appeals court maintained the trial court abused its discretion when it dismissed the complaint for lack of justiciable controversy.