NJ High Court Sides With Insurer in Pharma Fraud Case (Correct)

A W. R. Berkley Corp. unit won a ruling from New Jersey’s high court affirming the insurer is off the hook for a pharmaceutical company’s legal costs in a dispute where a director was accused of engaging in wrongful corporate acts in a dual capacity.

Claims in the underlying litigation “fall squarely within the disputed exclusion” under Berkley Insurance Co.'s policy issued to Mist Pharmaceutical LLC barring coverage for cases against executives involving their work at uninsured entities, the New Jersey Supreme Court said in a 5-2 decision Monday.

The “capacity exclusion” doesn’t require a causal connection between the excluded ...