AIG Scores Win on Insurance Coverage for ‘Ghost Gun’ Suits (1)

American International Group Inc. units are off the hook for a firearm retailer’s costs in suits alleging it fueled gun violence by marketing and selling “ghost guns,” in a major win for insurers seeking to avoid similar public nuisance litigation.

The underlying suits brought by New York Attorney General Letitia James (D) and the cities of Buffalo and Rochester alleged only intentional conduct by Primary Arms LLC, falling short of the threshold for insurance coverage, the US Court of Appeals for the Second Circuit said in a Wednesday opinion affirming a lower court ruling.

“We hold that, because the Underlying ...