MGM Resorts sues insurance company, claiming non-payment of legal costs from Las Vegas mass shooting

LAS VEGAS – More than 4,000 people seek compensation from MGM Resorts International in connection with the Las Vegas Strip mass shooting that left 58 people dead, the casino giant says in a lawsuit claiming that the insurance company has not paid promised legal costs.

Las Vegas-based MGM Resorts

MGM, -1.11%

claims breach of contract and accuses Illinois based Zurich American Insurance Co. has failed to pay defense costs for claims arising from the 201[ads1]7 shooting.

MGM Resorts owns the Mandalay Bay Hotel, where the shooting opened fire from a 32nd floor window, and the 91 Harvest Festival route where land music concert goers died and over 850 people were injured.

Company spokesman Brian Ahern told the Las Vegas Review Journal lawsuit filed Wednesday in the US District Court in Las Vegas is about legal costs, not about coverage for a potential settlement with victims.

Read: MGM Resorts estimates it can pay up to $ 800 million in decision over Las Vegas mass shooting

Zurich Americans did not immediately comment on the newspaper.

MGM Resorts has been mediating with the plaintiffs, hoping to avoid years of litigation in civil litigation in Nevada, California and five other states claiming negligence led to the deadliest mass shooting in modern American history.

"MGM is aware of over 4,000 claimants seeking compensation from MGM for their claims arising from (shooting)," said Zurich's US lawsuit. "MGM disputes any liability arising from the incident."

The company encourages defense spending that is not paid by the insurer in "many million dollars."

Brent Allen, president of the Allen Financial Insurance Group in Phoenix, told the Review-Journal the outcome of the case will hang on to a judge's interpretation of the insurance.

Allen said that MGM Resorts must prove that Zurich American violated the contract and acted in bad faith. He said it could be difficult for a company with money and resources for MGM Resorts to get sympathy from a judge.