Insurer Says No Coverage In Contaminated Melatonin Suit

Law360 (March 25, 2020, 7:08 PM EDT) -- An Illinois insurance company asked a California federal court on Wednesday to find it doesn't need to cover a pharmaceutical company in a suit claiming it made melatonin pills contaminated with plastic and metal, saying the alleged product defect doesn't constitute the kind of bodily injury or property damage covered by its policy.

Evanston Insurance Co. told the court that Kkare Pharmaceutical Inc. also is not entitled to coverage in the underlying suit because the policy excludes claims of product defects.

According to the complaint, Kkare manufactures and sells melatonin tablets as dietary supplements, and uses WorldWide Labs as its distributor...

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