Tylenol’s manufacturer lost a court battle.
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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