Fairlife LLC Faces Legal Challenge Over Advertising Claims

Fairlife LLC, a subsidiary of Coca-Cola Co., is facing a lawsuit from Navigators Insurance Co. The insurer is seeking a court ruling that it has no duty to defend Coca-Cola's dairy unit in a proposed class action. This legal action alleges that Fairlife made false advertising claims about animal care and environmental sustainability.

The foundation of this legal skirmish rests on coverage clauses. Navigators Insurance Co. filed a complaint on October 3 in the US District Court for the Northern District of Illinois. The insurer bases its argument on policy terms that exclude coverage for claims stemming from allegations predating January 2, 2020. This date is significant as it was just before Coca-Cola finalized its acquisition of Fairlife.