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CGL policy coverage

A federal district court in California has ruled that a commercial general liability (CGL) insurance policy did not cover lawsuits against Yahoo! Inc. alleging that it had invaded the plaintiffs' privacy when it sent them unsolicited text messages.

From January 2013 to April 2014, several class action lawsuits (collectively, the “Text Message Litigations”) were filed against Yahoo as a result of Yahoo's alleged transmission of unsolicited text messages. These lawsuits alleged violations of the Telephone Consumer Protection Act, 47 U.S.C. § 227. The Text Message Litigations alleged that through the unsolicited transmission of the text messages, Yahoo had invaded the privacy of the plaintiffs.

Once the Text Message Litigations began, Yahoo notified National Union Fire Insurance Company of Pittsburgh, PA, which had issued a CGL policy to Yahoo, to obtain coverage.

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