Y2K lawsuits target insurance companies

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Y2K lawsuits target insurance companies

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.

Read the full story online at www.nandotimes.com.