Zurich Insurance Unit Sued Over BrainTap Shareholder Litigation

A company selling technology to help users improve their mental health is suing a Zurich Insurance Group AG unit, seeking coverage for shareholder litigation against the firm and its founders.

Zurich American Insurance Co. breached its policy by failing to defend BrainTap Inc. and its founders, Patrick Porter and Cynthia Porter, the technology company said in a complaint filed Aug. 15 in the US District Court for the District of Delaware.

The underlying shareholder suit, filed last December in the District of Delaware, alleged the company and its officers misled investors regarding BrainTap’s intellectual property rights, misappropriated company funds, ...