Delaware High Court Denies Albertsons Insurance Coverage for Opioid Lawsuits
The Delaware Supreme Court has ruled against grocery chain Albertsons, denying it insurance coverage for the legal defense costs associated with over 100 opioid-related lawsuits. The court determined that Albertsons' commercial general liability policies, issued by insurers such as Chubb and American International Group, do not cover the broad economic losses claimed by governmental plaintiffs. These claims sought reimbursement for public health programs and social services rather than direct bodily injury damages. Citing precedents set in similar cases involving rival pharmacy chains Rite Aid and CVS, Judge Patricia A. Winston stated that the phrase "because of" bodily injury in the policies requires a direct connection to specific injuries, which was absent in these public nuisance suits. Albertsons had attempted to apply California or Idaho law, but the court rejected this, aligning with Delaware's legal interpretation. This ruling comes shortly after Albertsons announced a $774 million settlement to resolve the opioid litigation, which contributed to a significant quarterly net loss for the company. The decision reinforces the trend of courts denying insurance coverage for corporate defendants in the ongoing opioid crisis litigation.
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Delaware High Court Denies Albertsons Insurance Coverage for Opioid Lawsuits
The Delaware Supreme Court has ruled against grocery chain Albertsons, denying it insurance coverage for the legal defense costs associated with over 100 opioid-related lawsuits. The court determined that Albertsons' commercial general liability policies, issued by insurers such as Chubb and American International Group, do not cover the broad economic losses claimed by governmental plaintiffs. These claims sought reimbursement for public health programs and social services rather than direct bodily injury damages. Citing precedents set in similar cases involving rival pharmacy chains Rite Aid and CVS, Judge Patricia A. Winston stated that the phrase "because of" bodily injury in the policies requires a direct connection to specific injuries, which was absent in these public nuisance suits. Albertsons had attempted to apply California or Idaho law, but the court rejected this, aligning with Delaware's legal interpretation. This ruling comes shortly after Albertsons announced a $774 million settlement to resolve the opioid litigation, which contributed to a significant quarterly net loss for the company. The decision reinforces the trend of courts denying insurance coverage for corporate defendants in the ongoing opioid crisis litigation.