Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it allegedly settled many opioid suits and incurred substantial defense costs. A reorganization plan confirmed in March 2024 discharged opioid claims and created the Trust with Dundon as trustee.
Motions
CGL insurers sought summary judgment on late notice and the Products Exclusion; the Trustee cross-moved.
Governing Law – Pennsylvania Insurance Law.
Insurance Policies are construed under traditional contract principles; unambiguous language enforced as written. Coverage interpretation is a question of law when unambiguous.
DISCUSSION & HOLDINGS
Endo failed to provide notice “as soon as practicable,” notifying insurers only when the coverage action was filed in 2024 — after settlements and bankruptcy resolution.
Prejudice Not Established as a Matter of Law.
Although late notice impaired insurers’ procedural rights (investigation, defense participation), Third Circuit precedent requires proof that lateness probably altered the substantive outcome (e.g., lower settlement or viable defenses lost). The record showed factual disputes on that point. Result: Summary judgment denied on late notice.
Unbranded Promotions Included.
Allegations show Endo’s unbranded marketing was part of efforts to expand opioid use and sales; injuries allegedly flowing from such campaigns bear a sufficient causal connection to Endo’s products. The Products Exclusion bars coverage for bodily injury claims arising from Endo’s products, including unbranded promotions.
ANALYSIS
The Court enforced clear notice terms but adhered to Pennsylvania’s insurer‑protective yet insured‑fair actual prejudice requirement, refusing to presume prejudice solely from post‑settlement notice absent proof of a different likely outcome.
BOTTOM LINE
Late Notice:
Breach established, but no summary judgment due to disputed actual prejudice.
Products Exclusion:
Coverage barred for bodily injury claims arising from Endo’s products, including unbranded promotions.
Endo Breached the Notice Provisions by Providing Late Notice
The CGL Insurers’ policies contained clear and unambiguous provisions requiring that notice be provided to them “as soon as practicable of an ‘occurrence’ or an offense which may result in a claim.”
A Genuine Dispute Remains as to Whether the CGL Insurers Suffered Actual Prejudice
The CGL Insurers argued in their motion for summary judgment that “post-settlement notice is prejudicial” to insurers as a matter of law. The Court found that there is a genuine dispute of material fact as to whether this procedural handicap created by the late notice has led to disadvantageous, substantive results for the CGL Insurers.
Summary Judgment Was Granted in Favor of the CGL Insurers on the Basis of the Products Exclusion
The Court held that the Products Exclusion bars coverage of the Opioid Suits to the extent the underlying suits involve claims for bodily injury arising from Endo’s products, including Endo’s unbranded promotions.
The Court also granted in part and denied in part the CGL Insurers’ Motion for Partial Summary Judgment. Finally, the Court denied the Trustee’s Cross-Motion for Partial Summary Judgment.
ZALMA OPINION
The USDC issued a lengthy opinion concluding the even though the notice of the losses was later than was proper the insurers failed to prove that the late notice caused them damage but the insurers were able to prove that the exclusions applied. Lawsuits from major tort situations like the opioid catastrophe are usually not intended to cover such losses and the exclusions were clear and unambiguous. Resolving this type of coverage dispute is not easy and it took the USDC more than 50 pages to explain the decisions and, yet, all the issues were not resolved.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Post number 5287
Read the full article at https://lnkd.in/g8YCDK8a, see the full video at https://lnkd.in/g-3B_Tv7 and at https://lnkd.in/g9nhJXM5, and at https://zalma.com/blog plus more than 5250 posts.
ZIFL – Volume 30 Number 4
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
Over 600 Independent Collection Actions Aids Fraud
Multiple Suits or Arbitration on Fraudulent Claims Irreparably Harm GEICO
GEICO Successfully Fights No Fault Auto Insurance Claims Fraud by Fraudsters Seeking Independent Trials or Arbitrations for Each Suspected Fraudulent Claim
In Government Employees Insurance Company, et al v. Bhargav Patel, MD, Patel Medical Care,...
Not All Expert Testimony must be Scientifically Reliable
Post number 5284
Read the full article at https://lnkd.in/gcS7tWC8; see the video at https://lnkd.in/g7N27nuK and at https://lnkd.in/gcYh2sZG, and at https://zalma.com/blog plus more than 5250 posts.
In Church Mutual Insurance Company, S.I. v. Chabad Of New Mexico, No. 1:24-cv-00090-MIS-SCY, United States District Court, D. New Mexico (February 10, 2026) the USDC dealt with a declaratory judgment filed by Church Mutual that it owes no duty to cover Chabad’s claims because the property was “vacant” for more than sixty consecutive days before the acts of arson, and therefore no coverage is owed pursuant to the Policy’s “Vacancy” loss condition.
FACTUAL BACKGROUND
Church Mutual Insurance Company, S.I. (“Church Mutual”) renewed an insurance policy for Chabad of New Mexico (“Chabad”) covering real property in Rio Rancho, New Mexico. The policy included a “Vacancy” loss condition, stating that if the building was vacant for more than 60 ...
Not All Expert Testimony must be Scientifically Reliable
Post number 5284
Read the full article at https://lnkd.in/gcS7tWC8; see the video at https://lnkd.in/g7N27nuK and at https://lnkd.in/gcYh2sZG, and at https://zalma.com/blog plus more than 5250 posts.
In Church Mutual Insurance Company, S.I. v. Chabad Of New Mexico, No. 1:24-cv-00090-MIS-SCY, United States District Court, D. New Mexico (February 10, 2026) the USDC dealt with a declaratory judgment filed by Church Mutual that it owes no duty to cover Chabad’s claims because the property was “vacant” for more than sixty consecutive days before the acts of arson, and therefore no coverage is owed pursuant to the Policy’s “Vacancy” loss condition.
FACTUAL BACKGROUND
Church Mutual Insurance Company, S.I. (“Church Mutual”) renewed an insurance policy for Chabad of New Mexico (“Chabad”) covering real property in Rio Rancho, New Mexico. The policy included a “Vacancy” loss condition, stating that if the building was vacant for more than 60 ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
Declaratory Relief Available to an Insurer from USDC
Post number 5274
Read the full article at https://www.linkedin.com/pulse/resolution-coverage-issues-appropriate-under-federal-barry-wfpoc, see the video at and at and at https://zalma.com/blog plus more than 5250 posts.
Insurer Seeks Limitation of Liability of Child Killed by Foster Dogs
In the Cincinnati Specialty Underwriters Insurance Company, an Ohio corporation v. Dennis Murphy, as Personal Representative of the Wrongful Death Estate of Avery Colin Jackson-Dunphy, Deceased; Patrick Admiral Dunphy, an Individual; Danika Thompson, an Individual; and Animal Services Center Of The Messila Valley, a New Mexico limited Liability Company, No. CIV 24-1039 JB/JFR, United States District Court, D. New Mexico (January 23, 2026) resolved the issues raised about the court's jurisdiction.
Cincinnati Specialty Underwriters Insurance Company ...
Posted on January 26, 2026 by Barry Zalma
Insurance Fraud Should Not be a Retirement Plan
More from Excellence in Claims Handling Substack for Subscribers Only
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Health Insurance Providers Are Attempting Insurance Fraud to Fund Retirement
Every insurer is required by its shareholders, members, state statutes and state regulations to do everything possible to deter and defeat attempts at insurance fraud. Most insurers, therefore, have a staff of fraud investigators working under their Special Investigative Unit (SIU) and the SIU works to train the claims handlers to recognize the indicators or red flags of fraud.
Much to the surprise of...
