Bruce Levenson is famously known on Benzinga as a philanthropist and as one of the former owners of the Atlanta Hawks basketball team. He’s also quite the business professional. He co-founded the United Communications Group with Ed Peskowitz. He even has a background as a professional writer, writing for the Washington Star and Observer Publishing.
Recently, the former Atlanta Hawks owners have been in the news concerning a lawsuit filed against their former insurance company. The former owners, known as AHBE, sat down with the insurance company’s representative, Danny Ferry, and came to an undisclosed agreement. Shortly after, the New Hampshire Insurance Company voided that agreement.
On September, 13, AHBE filed a lawsuit against the insurance company, described as AIG. The civil action suit accuses AIG of breach of contract and insurance bad faith. AHBE’s side of the story is that under the policy, they were to be covered for certain losses pertaining to employment practices. These practices could include things like “wrongful termination” and “workplace torts.”
What’s even more shocking is that AHBE has provided documents proving that Danny Ferry, now former General Manager, gave AIG notice of the claim. In those documents, Ferry verified that AHBE were, in fact, covered. On June 22, Ferry and AHBE came to a buyout agreement, which ended the six-year relationship between the two groups.
According to Forbes, the appalling thing about this lawsuit is that AIG is refusing to admit that any claims have been made and that no policy has been triggered. According to the documents, AIG has the funds to pay out to AHBE; they’re simply refusing to do so. AIG is even refusing to participate in the defense of their claims or admit fault. Rightfully so, AHBE is seeking an additional 50 percent penalty to pay for everything.