Marshmallow’s co-founder and co-chief executive expects to recover the majority of its legal costs
Abacai-owned Mulsanne was last week (8 April 2022) ordered by to pay 60% of insurtech unicorn Marshmallow’s legal costs by a High Court judge, equating to £1.4m.
From this figure, £1m will be paid to Marshmallow over the next 14 days.
The case in question has been ongoing – Mulsanne Insurance Company v Marshmallow Financial Services (MFS)/Marshmallow Insurance concerns alleged trade theft secrets and a breach of contract, with MFS allegedly transferring Mulsanne’s customers to its new business branded Marshmallow Insurance.
Marshmallow deals with motor insurance and partnered with Mulsanne before launching its own insurer in January 2021.
By April 2021, Marshmallow had been ordered to disclose its rating tables and underwriting rules as Mulsanne accused the unicorn of stealing “trade secrets” to set up its own insurance arm.
As a result of the allegations, Mulsanne sought £40m in damages from Marshmallow.
Marshmallow’s co-founder and co-chief executive Alexander Kent-Braham said: “We’re delighted that the judge has decided to award us the majority of costs, in excess of £1.4m, reflecting that almost all of Mulsanne’s claims against us failed.
“This is in addition to the costs Mulsanne has been forced to pay Marshmallow up to this point. The judge recognised that this is no longer a substantial case in financial terms and we expect to recover up to 85% of our costs as part of future proceedings.”
Insurance Times has contacted Mulsanne for further comment.
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