Three insurers sued Pfizer to stay off the hook for a $400 million settlement reached by the drugmaker over off-label marketing, claiming the relevant policies had expired.
The three companies — Federal Insurance, North River Insurance and RSUI Indemnity — contributed policies to a “tower” of insurance of executive and organizational liability. Over the last three years, the lawsuit states, the insurers asked Pfizer for information on whether it provided notice “under any other tower of insurance” of potential off-label marketing or the existing lawsuits and investigations prior to the settlement to shareholders — which would indicate whether or not the settlement was covered by the now-expired policies — but the company declined, calling it privileged information. The three companies also seek compensatory damages for the time and expense of requesting information Pfizer never provided.
Pfizer is seeking coverage after it agreed in 2015 to pay $400 million to settle claims by shareholders who sued the company for lying about off-label marketing practices. The complaint referenced a series of lawsuits dating back to 2003.