Federal Judge Dismisses AMAG Pharmaceuticals’ $30 Million COVID-19 Business Interruption Claim Against Insurer

In a recent decision, U.S. District Judge Myong J. Joun of the District of Massachusetts dismissed pharmaceutical manufacturer AMAG Pharmaceuticals’ $30 million business interruption coverage claims over damaged Pfizer drugs. Judge Joun ruled that “mere inability to use a room thus does not amount to direct physical loss of the room.” He further noted that the policy specifically excludes “[l]oss or damage arising from loss of use,” effectively barring the loss of use claim asserted by AMAG. More details on this decision can be found here.