Insurers Nix Bid to Toss McKinsey Opioid Coverage Suit in NY

Liability insurers—including units of American International Group Inc. and Chubb Ltd.—withdrew their bid to dismiss a suit brought in New York by McKinsey & Co. seeking coverage for litigation alleging the consulting giant stoked the opioid crisis.

The deal reached ahead of a hearing Thursday before the New York Supreme Court, New York County will allow McKinsey’s suit to move forward demanding insurers cover their share of at least $347.5 million in expenses paid to resolve opioid-linked lawsuits.

The joint stipulation comes just days after McKinsey knocked out a suit the insurers brought in Delaware, where a state judge ...