Liberty Targets Drug Provider Over 'Pill Mill' Suit Coverage

Law360, New York (October 2, 2012, 12:55 PM EDT) -- Liberty Mutual Fire Insurance Co. sued drug distributor J.M. Smith Corp. in South Carolina on Friday, attempting to avoid covering Smith in a lawsuit alleging it's part of a “pill mill” system contributing to West Virginia's epidemic of painkiller abuse.

Liberty says its policy with Smith does not cover defending the suit — which was brought by West Virginia Attorney General Darrell McGraw against Smith and 13 other out-of-state drug distributors — because McGraw’s complaint doesn't allege an “occurrence” as defined in the policy and doesn't...
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