Insurer drops suit over covering tainted spine allograft litigation


A Hartford, Conn.-based insurer has dropped its lawsuit that aimed to avoid defending Aziyo Biologics in litigation over tainted spine allografts.

Navigators Specialty Insurance on Nov. 14 filed a notice of voluntary dismissal in the U.S. District Court of Maryland.

According to the lawsuit filed Sept. 30, Navigators Specialty Insurance issued a follow-form excess liability policy to Aziyo, effective Nov. 1, 2020, to Nov. 1, 2021. The policy, however, excluded cases "arising out of the actual, alleged, suspected or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of fungi or bacteria."

Aziyo Biologics recalled a lot of its FiberCel in 2021, and multiple lawsuits were filed on behalf of patients who contracted tuberculosis after receiving the product. 

Since the lawsuits were related to FiberCel and Mycobacterium tuberculosis, Navigators Specialty Insurance had asked a judge to relieve it from defending Aziyo.

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