Innovation says to contest Allstate's C$75 million claim

(Reuters) - Software firm Innovation Group (TIG.L) said on Tuesday Allstate Insurance Co of Canada had initiated a C$75 million lawsuit against it related to a customised software, but rejected the claim terming it "speculative in the extreme and without foundation."

Innovation, also an insurance outsourcing specialist, said the legal proceedings related to the design, development and implementation of customised software for Allstate's new policy management system by its Canadian unit Innovation Group (Canada) Ltd.

Innovation Group said it would vigorously defend the claim for C$75 million ($61.53 million) and costs. Innovation shares closed at 5.9 pence on Monday.

($1=1.219 Canadian Dollar)

(Reporting by Srikanth Srinivasa in Bangalore; Editing by Gopakumar Warrier)