9th Cir. Upholds Dismissal of Vegas Casino’s COVID-19 Coverage Action

SAN FRANCISCO — A federal appeals court has upheld dismissal of a Las Vegas casino’s COVID-19 coverage action against AIG Specialty Insurance Co., affirming that it did not plausibly allege it sustained direct physical damage to its property, as required by the policy.

In an April 15 memorandum, the 9th Circuit U.S. Court of Appeals panel found that while Circus Circus LV LP alleged that COVID-19 was present on its property, it failed to identify any physical damage caused by the virus leading to its closure.

“Rather, the allegations surrounding Circus Circus’s closure are based on the local Stay …