DEFENDING PROFIT-MAKING "CAREER COLLEGE" MARKETERS.
A for-profit marketer of "career college" services ("career college" in this case including what once was called "technical college") and its subsidiary provider of "post-secondary" courses were sued for alleged wrongful advertising in marketing education services for allegedly little or no education, as the Court put it, "for alleged wrongful advertising in connection with services they performed (or did not perform) to students at career colleges." Education Affiliates, Inc. v. Federal Ins. Co., No. -JFM-15-1624, 2016 WL 4059159, at *1 (D. Md. July 28, 2016).
Their D&O liability carrier refused to defend them against these claims. Not surprisingly, a Court held that under the universal liability insurance policy provision that provides virtually everyone with a defense regardless of whether the claims to be defended are false or not, so these defendants also were entitled to a defense under their liability policy. Education Affiliates, Inc. v. Federal Ins. Co., No. -JFM-15-1624, 2016 WL 4059159, at *2-*3 (D. Md. July 28, 2016).
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