9th Cir. Denies Las Vegas Casino’s Petition for Rehearing in COVID-19 Coverage Action

SAN FRANCISCO — A federal appeals court has refused to revisit its ruling upholding dismissal of Circus Circus LV LP’s COVID-19 coverage action against AIG Specialty Insurance Co., in which it found the casino did not plausibly allege it sustained direct physical damage to its property.

On May 24, the 9th Circuit U.S. Court of Appeals denied Circus Circus’ petition for rehearing en banc.

In its complaint filed in the U.S. District Court for the District of Las Vegas, Circus Circus alleged the COVID-19 virus and closure orders caused a physical loss of its insured property, triggering coverage under the …