USAHerald.com
A winter storm in 2021 was the catalyst for a lawsuit for over $400 million in damages.
A Samsung Electronics Co. semiconductor plant in Texas sued its insurer for damage claims tied to a power blackout. The federal lawsuit against Factory Mutual Insurance Co. said the Austin plant sustained “catastrophic losses” from property damage and lost business.
Factory Mutual paid Samsung a fraction of the $400 million claim as part of a “broader scheme” to underpay all storm-related claims by Texas policyholders. The $126 million that Factory Mutual paid to Samsung, cited policy exclusions for events that occur off the insured property, according to the lawsuit.
During the blackout, the Samsung plant was without power for roughly three days and had to spend subsequent days slowly reinstating power to its fabrication units.