Meth Is Not “All Natural”: Failure To Conform Exclusion Bars Coverage for False Advertising Lawsuits

In General Star Indemnity Co. v. Driven Sports, Inc., 2015 U.S. Dist. LEXIS 7966 (E.D.N.Y. Jan. 23, 2015), General Star Indemnity Co. (“Gen Star”) issued a commercial lines policy to Driven Sports, Inc. (“Driven”), a producer and seller of an energy supplement called Craze.  Driven had been sued in three separate actions alleging that Craze improperly contained a methamphetamine analog.  Gen Star provided a defense under reservation of rights.  Gen Star then brought a declaratory judgment action, and the parties cross-moved for summary judgment.…

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