7th Circ. Gives Mead A 2nd Chance At False Ad Coverage

Law360, New York (October 29, 2013, 6:06 PM EDT) -- The Seventh Circuit on Tuesday gave baby formula maker Mead Johnson & Co. another chance at forcing two American International Group Inc. insurers to cover a $13.5 million false advertising verdict, but said Mead alone must pay for a $15 million deal resolving multidistrict consumer fraud litigation.

A unanimous panel concluded that an Indiana federal judge had misapplied state law in ruling that Mead’s failure to give notice of rival PBM Products LLC’s false advertising accusations until a jury returned its $13.5 million verdict prejudiced Mead’s insurers...
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