AIG, Chubb Beat CVS in Delaware on Opioid Litigation Claims (2)

In a blow to commercial policyholders, Delaware’s high court ruled that CVS Health Corp. isn’t entitled to insurance coverage for claims alleging it fueled the opioid crisis.

The underlying suits don’t seek damages “because of any specific person’s bodily injury or damage to any specific property” and therefore don’t trigger coverage under liability insurance policies sold by carriers including units of American International Group Inc. and Chubb Ltd., the Delaware Supreme Court ruled Monday.

Litigation against retail pharmacy operators, drugmakers, and other companies over their alleged contributions to the opioid epidemic has sparked insurance fights across the country.

The state’s high court delivered a landmark ruling in 2022 siding with Rite Aid Corp.'s insurance carriers on coverage for opioid litigation. The Delaware Superior Court, relying on the Rite Aid decision, had concluded the claims against CVS were outside the scope of coverage.

On appeal, CVS argued insurance provisions for pharmacist liability afforded broader coverage than the policies at issue in the Rite Aid case.

The justices disagreed, however, writing that the pharmacist endorsements don’t modify the threshold requirement that damages must be “because of bodily injury or property damage.”

The high court also disagreed with CVS about the nature of the damages sought in some of the underlying suits.

Even suits with allegations specifying the numbers of residents treated, the medication provided, the number of doses, and the cost per dose, and suits with more general allegations of treatment expenses, didn’t seek recovery for any specific, individualized bodily injury, Chief Justice Collins J. Seitz Jr. wrote for the court.

The Delaware Supreme Court also shot down CVS’ argument that property damage should be treated differently than bodily injury claims.

“It would be inconsistent to require specific and individualized personal injury damage but permit general economic property damage,” Seitz said.

“We disagree with the Delaware Supreme Court’s decision today,” a spokesperson for CVS said in a written statement.

Public Nuisance Claims

The ruling, which largely relies on and expands the high court’s position in Rite Aid, comes as other corporate policyholders are litigating general liability coverage for opioid and similar public nuisance claims in Delaware.

McKinsey & Co. was sued by AIG and Chubb units in Delaware Superior Court earlier this year over coverage for opioid lawsuits, though the consulting giant is pushing to litigate the dispute in New York state court instead.

Insurers, on the other hand, will likely welcome the Delaware justices’ latest decision.

Units of Chubb and Hartford Insurance Group Inc. that sued Meta Platforms Inc. last year over public nuisance litigation alleging the social media giant got minors hooked on its platforms were likely hoping to rely on Rite Aid to deny coverage.

Blank Rome LLP and Berger McDermott LLP represent CVS. The insurers are represented by firms including Holwell Shuster & Goldberg LLP, Willkie Farr & Gallagher LLP, Simpson Thacher & Bartlett, BatesCarey LLP, Clyde & Co., and Kennedys Law LLP.

The case is In re CVS Opioid Ins. Litig., Del., No. 482,2024, 8/18/25.