Insurer Must Defend Alleged Counterfeiter: 7th Circ.

Law360, New York (March 12, 2009, 12:00 AM EDT) -- A wholesaler that allegedly sold counterfeit Newport cigarettes will have its insurance company behind it in court, after a federal court of appeals ruled that the insurer's advertising injury clause covers the policyholder and a prior publication exclusion does not apply.

In its decision handed down Thursday, the U.S. Court of Appeals for the Seventh Circuit affirmed that Capitol Indemnity Corp. must defend Elston Self Service Wholesale, which is being sued by Lorillard Tobacco Co. for allegedly selling counterfeit cigarettes.

The Seventh Circuit, which heard the...
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