A look at statistics showing how the insurance industry fared in consumer class action settlements.
Nov. 26--PITTSBURGH -- In response to a federal class-action lawsuit filed by West Allegheny and three other school districts against the Pennsylvania Cyber Charter School earlier this year, an insurance provider is asking federal court to determine the extent of the provider's liability.
Peerless Insurance, based in Keene, N.H., sold PA Cyber liability coverage, but in court documents filed Nov. 21 claims that the coverage does not extend to tuition money PA Cyber may have to return to individual school districts.
West Allegheny, Avonworth, South Park and Albert Gallatin filed suit against PA Cyber in April to reclaim tuition money paid for kindergarten pupils younger than 5. The case has not yet been adjudicated.
The state Supreme Court ruled in January that cyber charter schools cannot collect for students under the age of 5 if the home school district does not offer a 4-year-old kindergarten program.
The Supreme Court decision did not address tuition reimbursement, so the school districts turned to federal court for help reclaiming tuition payed to PA Cyber between the 2002-2003 and 2010-2011 school years.
PA Cyber attorneys have not yet responded to the complaint, according to federal court records.
The suit filed by the school districts does not state a specific monetary figure, either collectively or individually, and it does not include the number of pupils under the age of 5 involved.
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