AIG Beats Walgreens Opioid Claims in Latest Win for Insurers

American International Group Inc. insurance units aren’t on the hook for representative lawsuits against Walgreens alleging the retail pharmacy stoked the opioid epidemic, an Illinois state court ruled.

The underlying suits don’t allege damages “because of bodily injury” and therefore aren’t covered by AIG’s commercial general liability and druggist professional liability umbrella policies in effect from 1997 to 2013, Judge Cecilia A. Horan wrote in an opinion for the Circuit Court of Cook County, Ill., Chancery Division.

The underlying plaintiffs, including local governments and hospitals, “seek recovery of their own governmental, institutional, hospital, or payor expenditures allegedly resulting from the ...