NU Online News Service, Dec. 12, 4:23 p.m. — Washington
A venture capital firm has filed a lawsuit seeking up to $100 million against MIB Group Inc., Westwood, Mass., over a dispute over a business deal.
The Dallas-based venture capital firm, called e-Financial Ventures, accuses MIB of fraud, misrepresentation and breach of fiduciary duties involving a joint effort to develop an Internet portal, called e-Nable, that would allow life insurance companies to bind insurance policies at the point-of-sale.
“The lawsuit alleges that MIB failed to deliver on its promise to execute e-Nable’s business strategy,” says William A. Brewer III, of the Dallas law firm of Bickel & Brewer, which is representing e-Financial Ventures.
Brewer says MIB “promised capabilities it never had, support it never provided and loyalty it never intended.”
James Corbett, MIB’s general counsel, says that the lawsuit is currently being evaluated by MIB’s outside counsel, but that he does not believe the complaint has any merit.
He says MIB will address the specific allegations at the appropriate time.
Corbett adds that MIB is still working with e-Nable to ensure its success.
MIB is a nonprofit corporation owned by about 600 life insurance companies that acts as a data clearinghouse focusing on fraud prevention.
According to the complaint, MIB wanted to develop a system to streamline the life insurance underwriting process.
The complaint says life insurers use MIB’s database to help assure that policy applicants are not omitting or concealing vital facts.