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7th Circ. 'Pill Mill' Ruling Ushers In Nuisance Coverage

Law360, Los Angeles (July 20, 2016, 8:24 PM EDT) -- The Seventh Circuit's ruling Tuesday that an insurer must defend H.D. Smith in West Virginia's suit alleging that it has exacerbated a prescription drug abuse epidemic rejected the notion that liability insurance only covers damages suffered directly by an injured party, paving the way for companies to win coverage of claims that their products have created a "public nuisance."

A panel of the appeals court said an Illinois federal judge wrongly concluded that Cincinnati Insurance Co. had no duty to defend H.D. Smith LLC against the West Virginia attorney general's suit alleging the company has contributed to the rise of so-called...

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