May 13, 2020

San Francisco-based children’s clothing boutique Mudpie Inc. has filed a class action lawsuit on behalf of California-based retail stores against an insurance provider, saying the small businesses were wrongfully denied coverage for losses resulting from government-mandated public health shutdowns related to COVID-19 despite having paid premiums for business interruption policies.

The boutique is represented by California-based Gibbs Law Group and Cohen Milstein Sellers and Toll PLLC. The firms are actively reviewing potential claims on behalf of small business owners throughout the country who have been affected by insurance companies’ refusal to pay.

Mudpie is a children’s boutique located on Fillmore Street in San Francisco. The lawsuit, filed on Monday, alleges that Travelers Casualty Insurance Company of America acted in bad faith by categorically denying claims from retailers arising from California’s mandated interruption of business services.

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