Liability Insurer, Firearm Seller End Ghost Gun Coverage Dispute

Sept. 11, 2025, 3:12 PM UTC

Clear Blue Insurance Co. is ending its suit against a firearm seller over coverage for “ghost gun"-related litigation after the retailer conceded the suits aren’t covered under its general liability insurance policy.

Clear Blue has no duty to defend or indemnify Arm or Ally LLC in litigation brought by New York Attorney General Letitia James (D) and the cities of Buffalo and Rochester, and the insurer agreed to dismiss its claims with prejudice, the parties said in a joint filing Wednesday in the US District Court for the Southern District of New York.

The case is one of several coverage ...

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