Tylenol’s manufacturer lost a court battle.
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U.S. District Judge Frederick Lacey ruled in Newark, N.J., that the insurance policy between McNeilab Inc. and Affiliated FM Insurance does not cover finished products that have been sold and delivered. A subsidiary of Johnson & Johnson, McNeilab recalled Tylenol from store shelves nationwide after seven people in the Chicago area died from cyanide poisoning in September and October, 1982. McNeilab instituted a $50-million lawsuit against the insurance company in 1982, claiming that the wholesale recall of Tylenol was covered under its insurance policy.
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