“Pill Mill” is Entitled to Defense Coverage: Filling Drug Orders Not Illegal

Cincinnati Insurance Company v. Richie Enterprises LLC (W.D.Ky.; March 4, 2014)

A pharmaceutical drug distributor was awarded a defense for claims that it played a role as a pill mill, contributing to widespread drug addiction in the state. The underlying claim was brought against a number of pharmaceutical distributors by the West Virginia Attorney General’s Office. Although the insurer argued that coverage was precluded by virtue of the intentional and criminal conduct exclusion, the court rejected the argument, noting that the distribution of drugs based on orders placed was not illegal and the insured could not have reasonably anticipated violation of laws in that regard.