Seeking Companionship and Coverage: No Duty to Defend Dating Service Against Fraud Claims

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Court of Appeals of Wisconsin

In State v. GE-Milwaukee, LLC, 2011 WL 6032721 (Wis. App. Dec. 6, 2001), the Court of Appeals of Wisconsin held that an insurer had no duty to defend its insureds under a business insurance policy against consumer fraud allegations concerning the insured's dating service.

The Wisconsin Attorney General filed a lawsuit against GE-Milwaukee, doing business as Great Expectations, its owner and management company, alleging that the defendants carried out a pervasive scheme to deceive and defraud Wisconsin citizens in violation of numerous state consumer protection laws. The lawsuit alleged that the dating service's salespersons called potential customers to solicit subscriptions but, in the process, withheld information or made numerous misrepresentations concerning the dating service's cost, contract terms and conditions, and membership size.

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