Coca-Cola Dairy Unit Hit With Insurance Suit Over False-Ad Case

Fairlife LLC was sued by an insurer seeking a ruling that it has no duty to defend the Coca-Cola Co. dairy unit in a proposed class action alleging the company made false advertising claims about animal care and environmental sustainability.

Coverage for the underlying suit is barred by several provisions in a policy issued by Navigators Insurance Co., according to a complaint the insurer filed Oct. 3 in the US District Court for the Northern District of Illinois.

The policy bars claims arising out of acts allegedly committed since Jan. 2, 2020—right before Coca-Cola finished acquiring Fairlife—and the underlying plaintiffs ...