District Court Finds Sale of Knock Off Fendi Products Does Not Constitute “Advertising Injury”

The United States District Court for the Southern District of New York ruled that United States Fidelity & Guaranty Co. (USF&G) had no obligation to indemnify its insured, Ashley Reed, for a judgment of $30 million stemming from its sale and distribution of counterfeit Fendi products. United States Fid. & Guar. Co. v. Ashley Reed Trading, Inc., No. 11 Civ. 4782, 2014 U.S. Dist. LEXIS 116280 (S.D.N.Y. Aug. 20, 2014).

The coverage dispute arose out of the following circumstances. USF&G issued three CGL policies …

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