Cinemark Sues Insurer for $400 Million in Covid-Related Losses

  • Factory Mutual failed to honor policy, according to complaint
  • Movie theater business has been devastated by the pandemic
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Movie theater operator Cinemark Holdings Inc. sued its insurer for refusing to cover $400 million in losses and legal expenses linked to the coronavirus pandemic.

The third-biggest U.S. movie theater chain claims in a complaint filed Tuesday in Texas federal court that Factory Mutual Insurance Co. adopted a strategy that was designed to limit or altogether deny Cinemark the recovery it was entitled to under its insurance contract.