U.S. District Court for the District of Massachusetts in Boston. Photo: Google Judge Dismisses Pharmaceutical Manufacturer's $30M Business Interruption Coverage Claims Over Damaged Pfizer Drug
"Mere inability to use a room thus does not amount to direct physical loss of the room. Moreover, the policy expressly excludes '[l]oss or damage arising from … loss of use.' This exclusion straightforwardly applies to bar the loss of use claim asserted by AMAG here," wrote U.S. District Judge Myong J. Joun of the District of Massachusetts.
August 19, 2024 at 06:11 PM
6 minute read
A federal judge in Massachusetts denied a pharmaceutical manufacturer's request for business interruption coverage after an air leak at the plant caused a $30 million loss of a Pfizer drug due to mold exposure, finding the alleged losses weren't covered by "direct physical loss of or damage to property."
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