BELLEVILLE — Directors and agents of Casino Queen claim their insurer has failed to abide by their defense obligations in an underlying suit alleging the insureds sold $170 million in stock for less than fair market value.
Timothy J. Rand, Charles Bidwill, III and James Koman filed a complaint (and part 2) May 14 in the St. Clair County Circuit Court against RSUI Indemnity Company Inc., and CQ Holding Company Inc., alleging breach of contract, violation of the Illinois Consumer Fraud and violation of the Deceptive Business Practices Act.
According to the plaintiffs' complaint, CQ Holdings and its insured were issued a "private company management liability policy" by RSUI, which provided coverage for $3 million and an "aggregate policy limit of $9 million with CQ Holding paying a $75,000 'retention amount.'" The plaintiffs allege a class action was filed against the defendants and other directors and agents of the Casino Queen in April 2020, alleging breach of "various ERISA fiduciary obligations" relating to the Casino Queen employee stock option plan. The plaintiffs allege RSUI refused to reimburse their legal defense costs in the suit and deprived them of their right to independent counsel.
The plaintiffs seek compensation of more than $25,000, interest, trial by jury and all other just relief. They are represented by Ronald Norwood of Lewis Rice LLC in St. Louis.
St. Clair County Circuit Court case number 21-L-0463