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Bloomberg News

New York-based Arnell Group, which created a Super Bowl ad for Progressive Insurance Co. using the “E.T.” film character, sued the No. 4 personal auto insurer for firing it after allegedly promising it more business. Arnell said Progressive persuaded it to accept reduced fees because the agency eventually would get Progressive’s $100-million to $150-million account. Progressive dropped Arnell last March because the E.T. Super Bowl ad didn’t produce much new business. Arnell is seeking at least $20 million in damages plus $1.5 million in unpaid invoices. Progressive spokeswoman Leslie Kolleda said the company hadn’t yet seen the suit and couldn’t comment. Progressive is paying $10 million over three years for rights to E.T., the suit said.

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