NY Biotech Sues Insurer Over Skin Care Product Litigation Costs

A Brooklyn-based biotech is suing its insurer, an Arch Capital Group Ltd. unit, alleging the carrier breached its contract by failing to fully reimburse the company for subpoena and defense costs in litigation over a skin care product line.

Arch Insurance Co. failed to fully pay the costs Xylyx Bio incurred responding to subpoenas issued to the biotech and several of its executives in an underlying 2023 lawsuit brought in New York state court by Royal Promotion Group, Xylyx said in a complaint filed Monday in the US District Court for the Western District of Missouri.

The insurer also breached ...