Insurer doesn't need to defend Aziyo Biologics in tuberculosis litigation: lawsuit


An insurer is arguing that it shouldn't cover Aziyo Biologics from lawsuits related to allografts tainted by tuberculosis, according to a lawsuit filed Sept. 30 in the U.S. District Court of Maryland.

Hartford, Conn.-based Navigators Specialty Insurance issued a follow-form excess liability policy to Aziyo, effective Nov. 1, 2020, to Nov. 1, 2021, the lawsuit said. 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 related to FiberCel and Mycobacterium tuberculosis, Navigators Specialty Insurance is asking a judge to relieve them from defending Aziyo.

A spokesperson for Aziyo Biologics declined Becker's request for comment on the litigation.

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