Settlement Reached in Coverage Dispute for Four Loko Maker
The company that makes Four Loko, a caffeinated malt liquor beverage allegedly responsible for the deaths of five consumers, has reached a settlement with two Liberty Mutual Insurance Co. units which had sought a declaration that a policy exclusion freed them from defending or indemnifying the beverage maker in the underlying lawsuits. The Netherlands Ins. Co. v. Phusion Projects, Inc., No. 12-7968 (N.D. Ill., stipulation of dismissal filed March 11, 2014). The settlement terms have not been disclosed. Details about a Seventh Circuit ruling on the insurance carriers’ duty to defend appear in Issue 508 of this Update.