Following the
denial of a preliminary injunction motion
a few weeks back, it appears Vemma didn’t have much left to bargain with.

Over the past few weeks they’ve been negotiating with Hanover Insurance, with a settlement reached on or around August 17th.

According to the settlement agreement final judgement on counts one and two of Hanover’s lawsuit are awarded to Hanover.

In counts one and two in their
initial lawsuit
, Hanover had asked the court to declare

Vemma’s insurance policy provisions preclude coverage foe Vemma in the FTC lawsuit and

Hanover has no duty to defend and no duty to indemnify Vemma for any loss related to the FTC lawsuit.

The remaining counts in the lawsuit were dismissed with prejudice, as was
Vemma’s counterclaim
 in its entirety.

Judge Tuchi approved the proposed settlement agreement two days later on August 19th.

Going forward, the court has previously ordered Hanover to insure BK Boreyko’s defense in the FTC case.

What this ultimately means for Vemma is unclear. So far the company has racked up legal bills in excess of $1.3 million dollars.

In their counterclaim Vemma represented that if Hanover didn’t insure their defense, it would cause

imminent and irreparable harm … because it leaves (Vemma) without insurance coverage and the ability to defend (itself) at a critical juncture of the FTC Action.

Stay tuned…

🤖 Quick Answer

What was the outcome of Hanover Insurance's lawsuit against Vemma regarding FTC case coverage?
Hanover Insurance obtained a settlement agreement with Vemma on August 17th, winning on counts one and two of its lawsuit. The court declared that Vemma's insurance policy excludes coverage for the FTC lawsuit and that Hanover has no obligation to defend or indemnify Vemma. Remaining counts were dismissed with prejudice.

Did Vemma successfully defend its counterclaim against Hanover Insurance?
No. Vemma's counterclaim against Hanover Insurance was entirely dismissed with prejudice as part of the settlement agreement reached in August. This meant Vemma could not pursue further legal action on those grounds.

What were the key insurance coverage issues at dispute between Vemma and Hanover?
The primary dispute centered on whether V

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