KeyCorp affiliate defends claims relating to insolvent multi-employer group self-insurance trusts
Jones Day is representing an affiliate of KeyCorp in two matters brought by the New York State Workers Compensation Board, relating to two insolvent multi-employer group self-insurance trusts that provided workers' compensation insurance to their members. A predecessor of KeyCorp's affiliate served as the trust administrator (and in one case, as the claims administrator) to the trusts. Both trusts were deemed insolvent and taken over by the Board in the wake of the 2008-09 financial crisis, along with virtually every other group self-insurance trust in the state. The Board is pursuing claims of breach of fiduciary duty, breach of contract, negligence, and fraud among others, against the KeyCorp affiliate, former trustees, and other former service providers.
New York State Workers' Compensation Bd. v. Key Insurance & Benefits Services, Inc. et al., No. 02431-17 (N.Y. Supreme, Albany County)