Shasta Linen Supply, Inc. v. Applied Underwriters, Inc.


DLA Piper represented Applied Underwriters in its defeat of three separate motions for class certification arising out of a regulatory dispute over whether a reinsurance transaction adjunct to workers’ compensation coverage was required to be filed with, among others, the California Department of Insurance.

In 2016, the California Commissioner ruled that the reinsurance portion of the workers’ compensation program was required to be filed and further found that it was void. DLA Piper has since negotiated successful resolution of the California regulatory action as well as one in New York. In addition to actions by individual plaintiffs’ attorneys in California, Nebraska, Illinois, New York, New Jersey, Virginia, Connecticut and Massachusetts, class actions were filed in California, Nebraska and New York. The program had been sold to hundreds of employers in California and New York, as well as many other states.

In the last six months, DLA Piper has defeated all three of the class actions. In early 2019, DLA Piper defeated class certification in the putative California class action and, two months later, defeated class certification in the Nebraska putative action. Most recently, Judge John G. Koeltl of the US District Court for the Southern District of New York denied class certification in New York.

The DLA Piper team representing Applied Underwriters includes partners Shand Stephens (Picture), Anthony Coles, Amanda Morgan, Michael Hepworth, George Burns, Steven Rosato, Jeanette Barzelay, Jesse Medlong and Greg Sperla.

Involved fees earner: Jeanette Barzelay – DLA Piper; George Burns – DLA Piper; Anthony Paul Coles – DLA Piper; Michael Hepworth – DLA Piper; Jesse Medlong – DLA Piper; Amanda Lynn Morgan – DLA Piper; Steven Rosato – DLA Piper; Greg Sperla – DLA Piper; Shand Stephens – DLA Piper;

Law Firms: DLA Piper;

Clients: Applied Underwriters Inc.;