Insurers distance themselves from J&J counterfeit case

Two insurers have filed a lawsuit to avoid defending or compensating the exporter at the centre of the Johnson & Johnson counterfeit glucose strip case.

Citizens Insurance and Hanover Insurance want the Virginia court to confirm their contract with the exporter, Sterling Wholesale, excludes coverage for the J&J case. J&J is suing Sterling over the alleged diversion and relabelling of OneTouch blood glucose test strips.

The insurers argue their contracts with Sterling exclude personal and advertising injury claims resulting from criminal acts, Law360 reports. Plus, the lawsuit argues, the alleged events took place outside the coverage period, freeing the insurers from defending or compensating Sterling.

J&J added Sterling to its fake glucose test strip lawsuit in April 2009, one-year after it opened the case. In the amended suit, J&J alleged Sterling had financed the purchase of more than 20,000 OneTouch strips from overseas for relabelling and sale in the US.