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Drug wholesaler’s insurance victory could have far-reaching consequences

August 29, 2023

An opioid wholesaler’s court victory against an insurance giant opens the door to a new way for pharmaceutical companies to recoup legal bills stemming from the opioid crisis.

Earlier this month, a federal district court ordered a Chubb unit to pay North Carolina Mutual Wholesale Drug Co.’s defense costs in more than a hundred lawsuits that alleged the drug wholesaler had oversold opioid painkillers to pharmacies, according to a Blo0omberg report.

The company had directors and officers coverage through Chubb’s Federal Insurance Company, Bloomberg reported. D&O coverage generally covers a wider spectrum of losses than more narrowly focused liability coverage.

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