Court Ends Hanover Unit’s Claims in PBM Litigation Coverage Suit

A Hanover Insurance Group Inc. unit’s countercomplaint failed to show it had no duty to defend a pharmacy company in litigation with a pharmacy benefit manager, a federal court said.

The US District Court for the Northern District of California on Tuesday dismissed Massachusetts Bay Insurance Co.'s countercomplaint against Care Zone Inc. but said it could amend its claim for reimbursement of defense costs it has already paid.

• Care Zone sued the Hanover unit in July 2024, alleging the insurer refused and delayed payment of some defense costs incurred as a result of counterclaims against Care Zone by Express Scripts ...