Pfizer Loses to Hartford Insurer Over Investor Suit Legal Costs

Pfizer Inc. lost an appeal against an insurance unit of Hartford Financial Services Group Inc. after a federal appeals court freed the insurer from paying $10 million for the drugmaker’s legal costs under a directors and officers policy.

Twin City Fire Insurance Co. isn’t obligated to cover an underlying shareholder suit against Pfizer-owned Pharmacia because the drug manufacturer’s other insurers didn’t all recognize their duty to foot the legal bills, the US Court of Appeals for the Third Circuit said Friday.

Pharmacia was hit with a proposed shareholders’ class action in 2003 after it was acquired by Pfizer a year ...