MGM Resorts insurers liable for $751m of potential $800m Las Vegas shooting settlement

Casino owner MGM Resorts International said its insurers would cover the majority of a potential $800m bill to settle lawsuits brought by victims of the October 2017 shooting at its Mandalay Bay hotel and casino in Las Vegas. While the potential losses are estimated at $800m, MGM said it has $751m in insurance cover and that such payments have been agreed by its insurers. MGM and the plaintiffs have been in mediation since February to resolve claims from the attack, outside of the courts. In a quarterly Securities and Exchange Commission (SEC) filing, MGM said it was “reasonably possible” that the majority of claims could be settled. A minimum level of participation from claimants would result in claims of $735m, rising to $800m for 100% agreement from all claimants, MGM said. “After multiple mediation sessions over several months, progress has been made, and while mediation is ongoing, the company believes it is reasonably possible that a settlement will be reached,” the company added. Robert Eglet, an attorney representing 4,200 plaintiffs, told the US press that MGM’s talk of a settlement is premature. Settlement is “possible” but “not probable”, he said. The Las Vegas shooting at MGM’s Mandalay Bay hotel and casino claimed 58 lives and injured more than 800 when Stephen Paddock opened fire on a crowd gathered for an open-air concert, before killing himself. Plaintiffs claim MGM failed to protect the 22,000-strong crowd attending the Route 91 Harvest Festival. They are seeking damages for emotional distress, physical injury, medical expenses, economic damages and wrongful death. MGM said it is not legally responsible for the criminal actions of the gunman, but conceded that a mediation settlement will avoid protracted legal disputes. “The company intends for substantially all claimants to be covered by the settlement, however it remains possible that certain claimants may not join the settlement and/or additional claims may be asserted,” MGM told regulators. MGM said should mediation fail, “the company is currently unable to reliably predict the future developments in, outcome of, and economic costs and other consequences of, any such litigation related to this matter”. MGM said litigation in the courts would bring uncertainty for the company. It explained that it is not yet in a position to calculate any liabilities, but confirmed it has insurance to cover its defence costs. “The insurance carriers have not expressed a reservation of rights or coverage defence that affects the company’s evaluation of potential losses in connection with these claims,” MGM said in the SEC filing. “The company’s general liability insurance coverage provides, as part of the contractual ‘duty to defend’, payment of legal fees and associated costs incurred to defend covered lawsuits that are filed arising from the 1 October 2017 shooting in Las Vegas. Payment of such fees and costs is in addition to (and not limited by) the limits of the insurance policies and does not erode the total liability coverage available,” MGM said.

MGM Resorts insurers liable for $751m of potential $800m Las Vegas shooting settlement

Want to read this article?

Read Next

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Want to read this article?

Read Next

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Related Articles