Pain-Pump Seller DJO Lied To Get $10M Policy, Insurer Says

Law360, Los Angeles (December 18, 2013, 10:13 PM EST) -- Medical device distributor DJO Global Inc. was sued Tuesday in California district court for illegally obtaining $10 million in coverage from Ironshore Specialty Insurance Co. by hiding allegations in underlying suits that it sold products for off-label use.

New York-based Ironshore wants DJO to repay the $10 million the insurance company has spent since March defending personal injury lawsuits that allege customers were harmed by DJO's illegally selling "pain pump" continuous anesthetic delivery devices for off-label use, claiming Tuesday that DJO misrepresented the nature of those suits to obtain its policy.

"Had DJO disclosed to Ironshore that … plaintiffs in the...

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