Insurance companies could face hundreds of lawsuits seeking repayment of much of the estimated $100 billion spent in the U.S. to upgrade computer systems against the Y2K glitch.
Already, four big companies – Xerox, Nike, Unisys Corp. and GTE Corp. – and two government agencies have filed lawsuits totaling about $700 million against their insurers to recoup Y2K expenses.
Insurance-industry attorneys say the plaintiffs are basing their cases on a shaky legal principle that shouldn’t apply to Y2K. Most other lawsuits accuse software companies or programmers of providing products that are likely to fail on or after Jan. 1.
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