Insurer Must Defend Supplement Maker Against Advertising Injury Claims, 3rd Cir. Rules

PHILADELPHIA — Evanston Insurance Co. must defend the maker of a nutritional supplement in a lawsuit accusing it of making false claims about its competitor 5-Hour Energy, the 3rd Circuit U.S. Court of Appeals has ruled.

In a Jan. 5 precedental opinion that overturned a Pennsylvania federal court ruling, the appellate panel found the underlying allegations potentially trigger coverage under the policy’s Advertising Injury provision.

Vitamin Energy LLC was sued in the Eastern District of Michigan by International IP Holdings, LLC, and Innovation Ventures LLC, the owners of trademarks for 5-hour Energy liquid energy shots. The lawsuit, among other things, …