Insurer Disputes Coverage For NECC-Linked Compounder

Law360, New York (November 25, 2013, 1:43 PM EST) -- Ironshore Specialty Insurance Co. sued to disavow covering a New England Compounding Center sister pharmacy against claims from alleged victims of the NECC-linked meningitis outbreak, saying Friday that attempts to paint the insured as an NECC alter ego don't qualify for coverage.

Ironshore argued in Massachusetts federal court that Ameridose LLC — a compounding pharmacy owned and operated by many of the same people as NECC but legally distinct — cannot tap its $5 million excess policy for defense and indemnity against personal injury suits that seek to pierce the corporate veil and hold Ameridose liable for NECC's torts.

Ameridose had...

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