Cannabis Product Class Action Draws Insurance Coverage Lawsuit

November 17, 2025

A Nationwide Mutual Insurance Co. carrier is suing a MariMed Inc. unit, seeking a ruling that it owes no coverage for a proposed class action alleging the Massachusetts cannabis company misrepresented its products.

Scottsdale Insurance Co. has no duty to defend or indemnify Mari Holdings IL LLC because the underlying lawsuit doesn’t allege “bodily injury,” “property damage,” or “personal and advertising injury” as defined in its policies, the insurer said in a complaint filed Nov. 14 in the US District Court for the Northern District of Illinois.

The underlying lawsuit alleges Mari Holdings violated the Illinois Consumer Fraud and Deceptive …

 

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