BetterHelp Says Insurer Must Cover FTC Deal, Privacy Litigation

Teladoc Health Inc.'s online counseling service BetterHelp Inc. is suing its insurance carrier, a Loews Corp. unit, over coverage for Federal Trade Commission proceedings and privacy litigation against it.

Columbia Casualty Co., which is also part of CNA and insured Teladoc, “recklessly disregarded its duty to defend and left Plaintiffs to fend for themselves,” BetterHelp said in a complaint filed March 14 in the US District Court for the Northern District of California.

BetterHelp in 2023 was hit with an FTC action banning the company from sharing consumers’ health data for advertising purposes and requiring it to pay $7.8 million ...