AIG vs Google: Delaware Court Halts Insurance Coverage Dispute Over Social Media Claims

A Delaware court has stayed an insurance coverage dispute between AIG and Google over social media claims. The case revolves around thousands of lawsuits filed since 2022 alleging YouTube harmed minors, known as the Social Media Litigation.

American Home Assurance Company and National Union Fire Insurance Company, both part of the AIG group, sought a declaration from the Delaware Superior Court that they owe no duty to defend or indemnify Google, Alphabet, and YouTube. However, the court agreed with Google's argument that California law governs the policies and that filing in California first is the correct course of action.

The dispute began when Google tendered claims to AIG in July 2024. AIG issued a reservation of rights letter in November 2024 but failed to provide a coverage position until June 4, 2026. By then, both sides had already sued each other in separate courts, with Google filing first in California and AIG following in Delaware.

The court ruled that the two suits share a common nucleus of facts and that any party gap could be fixed by joinder in California. The decision was made under the McWane framework, which generally defers to a first-filed action in another jurisdiction unless compelling reasons exist to proceed.