LAS VEGAS (CelebrityAccess) MGM Resorts International is suing Zurich American Insurance Co. for breach of contract, accusing the Illinois-based company of failing to pay defense costs for damage claims stemming from the mass shooting at its Mandalay Bay Resort & Casino that left 58 people dead and more than 850 injured.
More than 4,000 people are seeking damages from MGM Resorts related to the 2017 incident, where a lone shooter fired at a crowd at the Route 91 Harvest country music festival from his hotel window at the Mandalay, owned by MGM Resorts.
Company spokesman Brian Ahern told the Las Vegas Review-Journal the lawsuit, filed June 19 in U.S. District Court in Las Vegas, is about legal costs, not about coverage for a potential settlement; Zurich American did not immediately comment.
MGM has been in mediation with plaintiffs, hoping to avoid years of litigation in civil lawsuits.
“MGM is aware of in excess of 4,000 claimants who are seeking compensation from MGM for their claims arising out of the (shooting),” the Zurich American lawsuit said. “MGM disputes any liability arising out of the event.”
Brent Allen, president of Allen Financial Insurance Group, told the paper that MGM Resorts will have to prove Zurich American breached its contract and acted in bad faith, adding that a company with the deep pockets of MGM Resorts will have a hard time currying favor from a judge.