Judge Finds NYMAGIC Liable for Defense of Permathene Action

LAKE CHARLES, La. - A Louisiana federal judge has ruled that insurer NYMAGIC Inc. is liable for the entire defense and at least some of the settlement of a products liability lawsuit brought against a company that marketed an over-the-counter diet drug. Weaver v. CCA Industries Inc., No. 01-2096 (W.D. La.).

U.S. District Judge Robert G. James ruled May 12 that CCA is covered under the policy's vendor's endorsement and that NYMAGIC is CCA's primary insurer.

In 2001, Robert Weaver sued CCA, alleging that he suffered a hemorrhagic stroke caused by his ingestion of Permathene, an over-the-counter diet drug containing …