White and Williams Insurance Coverage team prevailed in defending its insurance company client against claims that it should cover a putative class's economic claims that class members paid for a product that did not work as advertised. The underling suit, filed in 2015, alleges that KT Tape, an athletic tape made by KT Health Holdings LLC, provides benefits resulting only from the placebo effect. The lead plaintiff in the case also claimed that the tape gave him a rash.
Cincinnati Insurance Company argued that the policy covered only personal injuries and that the insurer was thus obligated to defend against only the lead plaintiff's claim. A Massachusetts federal judge rejected KT Health's argument that that injuries were implied in the claims the tape did not work as advertised, ruling that the Cincinnati Insurance policy requires the insurer to defend KT Health against only the personal injury claim of the lead plaintiff. The insurance company is not responsible for covering the athletic tape maker against the false advertising class allegations.
Eric Hermanson, Josh Mooney and Rachel Eisenhaure represented Cincinnati Insurance Company.
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