Walmart's Global Reach: Net Sales Breakdown by Activity

The Delaware Supreme Court has ruled that CVS Health cannot obtain opioid coverage from AIG and Chubb. This decision follows a dispute between CVS and the insurance companies over liability for opioid-related claims. The ruling has significant implications for the pharmaceutical industry and may impact the availability of insurance coverage for opioid-related lawsuits.

In a significant decision that has far-reaching implications for the pharmaceutical industry, the Delaware Supreme Court ruled that CVS Health Corp. cannot obtain insurance coverage from AIG and Chubb for claims alleging it fueled the opioid crisis. The ruling, handed down on Monday, July 18, 2025, is a blow to commercial policyholders and could impact the availability of insurance coverage for opioid-related lawsuits across the country [1].

The case, In re: CVS Opioid Insurance Litigation, revolved around whether CVS Health was entitled to insurance coverage for claims seeking damages due to the opioid epidemic. The Delaware Superior Court initially ruled that the claims against CVS were outside the scope of coverage. However, CVS argued that insurance provisions for pharmacist liability afforded broader coverage. The Delaware Supreme Court, in a unanimous decision, disagreed, stating that the pharmacist endorsements did not modify the threshold requirement that damages must be "because of bodily injury or property damage" [1].

The court also rejected CVS' argument that property damage should be treated differently than bodily injury claims, noting that it would be inconsistent to require specific and individualized personal injury damage but permit general economic property damage [1]. The ruling expands on the high court's position in a previous case involving Rite Aid Corp. [1].

This decision comes at a time when other corporate policyholders are litigating general liability coverage for opioid and similar public nuisance claims in Delaware. For instance, McKinsey & Co. was sued by AIG and Chubb units over coverage for opioid lawsuits, though the consulting giant is pushing to litigate the dispute in New York state court instead [1].

Insurers, such as units of Chubb and Hartford Insurance Group Inc., are likely to welcome the Delaware justices' latest decision. They had sued Meta Platforms Inc. last year over public nuisance litigation alleging the social media giant got minors hooked on its platforms, hoping to rely on the Rite Aid decision to deny coverage [1].

The ruling underscores the complex nature of insurance coverage for opioid-related claims and highlights the ongoing legal battles between pharmaceutical companies and their insurers. As the opioid crisis continues to unfold, the financial community will closely monitor these cases and their impact on the availability of insurance coverage for opioid-related lawsuits.

References:
[1] https://news.bloomberglaw.com/business-and-practice/aig-chubb-beat-cvs-in-delaware-over-opioid-litigation-coverage