Sally Beauty Sues Insurers Over Hair Relaxer Injury Litigation

Cincinnati Financial Corp. insurance units were hit with a lawsuit from Sally Beauty Holdings Inc. alleging the carriers breached their policies by refusing to fully pay the beauty supply distributor’s defense costs in litigation over hair relaxer products.

The insurers—Cincinnati Insurance Co. and Cincinnati Casualty Co.—also violated Texas law by failing to promptly pay Sally Beauty’s submitted defense costs, the beauty company said in a complaint filed Aug. 29 in the US District Court for the Eastern District of Texas.

The underlying litigation concerns hair relaxer products designed and manufactured for Denton, Texas-based Sally Beauty by RNA Corp. starting in ...