Cinemark Wins 1st Battle in $400 Million COVID-19 Coverage Action

SHERMAN, Texas — A Texas federal judge has denied Factory Mutual Insurance Co.’s motion for judgment on the pleadings in a COVID-19 insurance action filed by Cinemark Holdings Inc., ruling that it has plausibly alleged that the presence of the virus in its movie theatres caused property damage, triggering coverage.

On May 5, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas explained that the coverage provided under Cinemark’s policy is broad and expressly applies to loss and damage caused by “communicable disease,” including COVID-19.

Cinemark is the third largest movie theatre owner in the …