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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Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Proof of Highly Contaminated Water is Required for Extra Payments
Post number 5300
Read the full article at https://www.linkedin.com/pulse/acting-your-own-lawyer-foolish-barry-zalma-esq-cfe-mbg0c, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Acting as Your Own Lawyer is Foolish
Evidence of Breach of Contract Survives Dismissal of All Other Charges
In Lee Lifeng Hsu and Jane Yuchen Hsu v. State Farm Fire And Casualty Company, C. A. No. N24C-09-020 CLS, Superior Court of Delaware (February 27, 2026) a claim to State Farm who paid approximately $61,000 after assessments but denied coverage for additional items including ceramic tiles, the kitchen floor ceiling, underlayment plywood, and numerous personal property items resulted in suit by the Hsu’s acting in pro per.
Facts
Lee Lifeng Hsu and Jane Yuchen Hsu (“Plaintiffs”) purchased a homeowners’ insurance policy from State Farm Fire...
Insurance Condition Requires Following the Intent of the Parties
Post number 5307
Principles of Contract Interpretation Compels Reading Contract as Written
Read the full article at https://www.linkedin.com/pulse/portable-storage-containers-buildings-barry-zalma-esq-cfe-fkg1c and at https://zalma.com/blog.
In Eastside Floor Supplies, Ltd. v. SCS Agency, Inc., Hanover Insurance Company, et al., No. 2024-01501, Index No. 609883/19, 2026 NY Slip Op 01488, Supreme Court of New York, Second Department (March 18, 2026)
In May 2019, a fire damaged business personal property belonging to the plaintiffs, which was stored in portable storage containers at their Manhattan premises. At the time of the fire, the plaintiffs were insured under a businessowners insurance policy (BOP) issued by the defendant Hanover Insurance Company which provided general coverage for business personal property, and which included a specific extension for “Business Personal Property Temporarily in Portable Storage Units” (the portable storage ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
