Recent multimillion-dollar court rulings highlight the high stakes businesses face when allegations of discrimination, negligent hiring, environmental violations, or product failures occur. Even a single incident can carry substantial financial, operational, and reputational consequences. Maintaining robust risk management practices and appropriate insurance coverage is critical to minimizing exposure and staying ahead of emerging risks.
Jury Awards $20 Million to Nurse Fired by Hospital — Employment Practices Liability
A nurse received a $20 million award after a federal jury in Colorado determined she was the victim of workplace racial discrimination. The jury found that the nurse, who is Black, was fired by her employer, a hospital, because of the complaints she had made about her mistreatment by white co-workers. The plaintiff alleged her employer used a patient’s death from natural causes as an excuse to fire her. According to the lawsuit, the 94-year-old patient was experiencing organ failure, and the family agreed to turn off the ventilator. The plaintiff, who stayed past her shift, then followed a respiratory therapist’s directions on switching off the ventilator, according to the lawsuit. The Colorado Attorney General’s Office originally filed manslaughter charges against the nurse but eventually dropped the case. The plaintiff stated the hospital had pushed for her prosecution and sent incorrect information to the state Board of Nursing. The jury awarded $5 million in compensation for lost wages, reputational damage, and emotional distress. The remaining $15 million was for punitive damages. The hospital plans to appeal.
Lawsuit Settled for $16 Million Following Fatal Impaired Driving Incident — Commercial Auto
An Ohio packaging company agreed to pay a $16 million settlement after a fatal 2024 car crash involving one of its drivers. The estates of four individuals killed in a wreck, along with another seriously injured party, alleged that the company was negligent when it hired the employee, who drove while intoxicated and struck the vehicle with the five occupants. The company’s employee allegedly drove over 70 mph and reached nearly 90 mph in a 40-mph zone. Multiple police departments received reports of a reckless driver in the area of the crash that day. The driver, who also allegedly rear-ended a pickup and failed to stop, also faces criminal charges.
Chemical Companies Agree to Pay Up to $2 Billion to Settle PFAS Claims — Environmental Liability
Three chemical companies have agreed to pay New Jersey up to $2 billion to settle environmental claims arising from perfluoroalkyl and polyfluoroalkyl substances (PFAS). These substances, commonly known as “forever chemicals” since they resist breaking down and can build up in people, animals, and the environment, have been linked to several adverse health effects. Environmental activists allege that PFAS manufacturers were aware of these risks long before they were made public. Pursuant to the settlement, the three companies will pay $875 million over 25 years and establish a remediation fund of up to $1.2 billion. If approved by the courts, the companies will split the costs. his settlement is an addition to another company that recently agreed to a $450 million settlement with New Jersey regarding PFAS contamination of natural resources.
Carmaker to pay $243 Million After Fatal Collision Involving Autopilot Software — Product Liability
A federal jury in Florida determined an electric vehicle manufacturer must pay $243 million after a 2019 incident involving one of its vehicles resulted in the fatality of one individual and severe injuries to another. The plaintiffs’ attorneys alleged that the vehicle’s autopilot driver-assistance software failed to alert the driver and to activate the brakes. According to testimony, the driver lost sight of the road after dropping his phone while approaching an intersection. He then continued through the intersection and struck a parked SUV with two people standing nearby. Neither the driver nor the autopilot software engaged the brakes in time to prevent the car from hitting the SUV. The jury determined that the company misrepresented the software’s capabilities, withheld critical crash data, and must pay $200 million in punitive damages. The jury also determined that the plaintiffs should receive approximately $129 million in compensatory damages. Because it found the driver two-thirds liable for the incident and the company one-third at fault, the automaker is responsible for approximately $43 million of that award. The company has filed an appeal.
The lessons from these cases are clear: risk is real, and consequences can be substantial. Evaluating exposures, maintaining proper coverage, and taking proactive steps to mitigate potential threats can help protect your business from similar outcomes. Contact us today to ensure your business is prepared for the unexpected.
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This publication is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice. Readers should contact a licensed insurance professional or attorney for appropriate advice. ©2025 Zywave, Inc. All rights reserved.
