The insurer for a now-defunct private probation company in Tennessee has lost its bid to avoid covering more than $14 million the business paid to settle a 2015 class action accusing it of squeezing money from misdemeanor probationers through additional fines, fees and threats of jail.
Pathways Community Corrections Inc. and its parent, Providence Service Corp., settled the claims last year for more than $14.3 million, after spending more than $1 million in legal fees, and demanded that Illinois Union Insurance pony up the money under a $15 million excess coverage policy.
