Aug 18, 06:45 PM

Delaware High Court Says AIG and Chubb Needn’t Cover CVS Opioid Suits

The Delaware Supreme Court ruled that CVS Health Corp. cannot tap general liability policies issued by American International Group Inc. and Chubb Ltd. to defray the cost of more than 2,300 lawsuits accusing the pharmacy chain of helping fuel the U.S. opioid epidemic. In a unanimous opinion released Monday, Chief Justice Collins J. Seitz Jr. said the underlying complaints seek compensation for broad economic harms—not the individualized “bodily injury” or “property damage” required to trigger coverage under the policies. The decision affirms two earlier Delaware Superior Court findings and underscores the state’s 2022 precedent that blocked similar coverage claims by Rite Aid Corp. CVS argued that pharmacist-liability endorsements in its contracts offered broader protection, but the justices found the language “similar in all material respects” to Rite Aid’s coverage. The court also dismissed CVS’s contention that its $5 billion nationwide settlement of opioid claims in 2022 proved the suits involved bodily injury, noting the settlement addressed public-nuisance costs rather than specific personal injuries. Monday’s ruling is a victory for insurers that have resisted paying opioid-related claims filed by pharmacy operators, drugmakers and consultants. It signals continued headwinds for corporate policyholders pursuing coverage for public-nuisance lawsuits, while bolstering carriers’ efforts to limit exposure under general liability contracts.

#Delaware Supreme Court #Delaware Superior Court #Rite Aid Corp #CVS #Rite Aid

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Delaware High Court Says AIG and Chubb Needn’t Cover CVS Opioid Suits

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