Las Vegas, NV – A Nevada state court jury heard opening statements Friday in a long-running lawsuit over allegations the program administrator for defunct insurer Spirit Commercial Auto Risk Retention Group owes $44 million to the state agency that placed it into receivership, and the trial is being webcast and recorded gavel-to-gavel by Courtroom View Network. Nevada Commissioner of Insurance v. Thomas Mulligan, et al.,
The lawsuit, filed in 2020 by the office of Nevada’s Commissioner of Insurance, accuses both the executive leadership team at CTC Transportation Insurance Services LLC and members of Spirit’s board of directors of failing to properly manage and document Spirit’s finances. It alleges that despite Spirit operating without employees and relying on CTC to run its business, that senior leadership at both companies failed to act after an independent audit revealed major problems with CTC’s bookkeeping.
The Clark County jury heard six separate opening statements from defense attorneys representing former Spirit board members and CTC executives, with each placing various amounts of blame on CTC, Spirit and the Commissioner’s office in a trial that will delve into the inner workings of a major auto risk retention group’s collapse into insolvency…