9th Circ. Backs Millennium In $8.7M False Ad Coverage Suit

Law360, Los Angeles (January 27, 2017, 9:49 PM EST) -- The Ninth Circuit on Friday affirmed a lower court's judgment that Darwin Select Insurance Co. breached its duty to defend Millennium Laboratories Inc. against two rivals' false advertising claims, but narrowed the scope of Darwin's defense obligation in one case.

A California federal judge determined in 2014 that the insurer breached its duty to defend the medication-monitoring company against claims by rivals Ameritox Ltd. and Calloway Laboratories Inc. That ruling paved the way for a 2015 jury verdict that Darwin breached its obligation of good faith and fair dealing by refusing to cover Millennium's defense costs and an order that the...

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