No Coverage for Claims that Weight Loss Products Were Ineffective

Claims that weight loss products were ineffective and did not lead to weight loss were not covered by the manufacturer’s insurance policy, which provided coverage for claims of “bodily injury,” the U.S. Court of Appeals for the Fifth Circuit has affirmed.   

The Case

Consumers sued CSA Nutraceuticals GP, L.L.C., and CSA Nutraceuticals, L.P., (collectively “CSAN”) in a California state court, alleging that they had been induced to purchase ineffective weight loss products by false and fraudulent misrepresentations. The district court found that CSAN’s insurer had no duty to defend, and CSAN appealed.

The Appellate Court’s Decision

The Fifth Circuit affirmed. It explained that the consumers only alleged that they had been financially harmed by purchasing an ineffective product but their complaints did not include “a single factual allegation” suggesting that any consumer had ever been physically harmed by the weight loss products. Failing to lose weight meant that their bodies “basically did not change,” the circuit court noted, concluding that it did not mean that anyone was injured.

The case is CSA Nutraceuticals GP, L.L.C. v. Chubb Custom Ins. Co., No. 12-10317 (5th Cir. Jan. 2, 2013).