Industry News

Salem Sues Insurance Company Over 2000 Mules Case

Salem Media Group is suing insurer Atlantic Specialty Insurance Company in the Central District of California for breach of contract after the insurer declined to pay a claim under the “Producer and Entertainment Advantage Policy,” it sold Salem (for the policy period of April 29, 2022 through April 29, 2023) that provided for “$5,000,000 for each claim and in the aggregate, with a retention amount of $25,000” for numerousim liabilities, including defamation. The claim was the result of Georgia resident Mark Andrews suing Salem for defamation after the film and its trailer falsely depicted Andrews committing a crime (ballot stuffing). Salem has since apologized to Andrews. Atlantic denied the claim arguing that an “occurrence that was first committed” happened before the policy inception date,” and further that it could deny coverage because there was no previous insurance for 2000 Mules although Salem says it had proof of just such a policy. Atlantic also denied saying that pre-policy advertising contributed to the defamation claim, but Salem argues that this was done by third-parties “for which Salem Media, as the film distributor, was not responsible.” Salem is asking for a jury trial.