Birla has been forced to scrap its flagship tech insurance policy as the company has become embroiled in a legal battle with an Australian court.
The US-based lender has accused the Federal Court of being “extremely aggressive” in its pursuit of its claims.
The decision by the Federal Circuit Court of New South Wales (FCN) to reverse the Federal Government’s decision to block Birlas policy, which covers tech companies, has been condemned by Birlan.
The Australian Competition and Consumer Commission has also been critical of the company, accusing it of being overly aggressive in its claims and charging excessive rates.
In response to a series of claims made against Birlamas policy last month, the Federal government announced a number of measures aimed at helping to protect consumers.
The new regulations will make it harder for Birlans policy to be used as a weapon against it, by requiring the company to disclose any claims that are made against it to consumers, and will require it to provide an annual report on its legal and accounting practices.
Birla’s latest legal battle, which has been going on for several months, has involved a lawsuit filed by the Australian Competition & Consumer Commission (ACCC) against B&B, the parent company of the Australian branch of the global financial services company.
Last month, Birlar’s lawyers told the court that the company was “trying to intimidate” the Federal court, and claimed that the Federal Labor government had attempted to block their case from proceeding.
A spokesperson for B&B said it was reviewing the decision, which the company is currently reviewing with lawyers.
“We are disappointed by the court’s decision, but will defend ourselves vigorously,” the spokesperson said.
It is the latest legal drama in a battle between two of the world’s biggest technology companies, as well as the Federal courts.
After its legal problems, B&&b announced it would sell its Australian operations and take control of its UK operations.
However, it has since backed away from the plan, and is now exploring the option of moving its Australian business to the US.
According to the Federal Bureau of Investigation, there are more than 500 million consumers using B&B as a source of financial products.
The bank’s decision follows a similar move by B&C.
Earlier this year, BAMTech filed a class action lawsuit against BIC in the US Federal Court, alleging the Australian Government had used a regulatory “shakedown” against the bank in order to impose unreasonable costs on the company.
The US Department of Justice is also investigating the claims.
Read more about B&AMS claims, lawsuits and investigations here.