Hanover Insurer, Pharmacy End PBM Litigation Coverage Fight

Pharmacy company Care Zone Inc. and a Hanover Insurance Group Inc. unit agreed to drop a coverage dispute over defense costs in underlying litigation with a pharmacy benefit manager.

Care Zone and Massachusetts Bay Insurance Co. filed a stipulation of voluntary dismissal with prejudice in the US District Court for the Northern District of California on Tuesday.

• Care Zone sued the Hanover unit in July 2024, alleging the carrier had refused and delayed payment of millions of dollars in defense costs incurred in litigation with Express Scripts Inc., even though it hadn’t denied its obligation to cover the costs. ...