California Gold Products v. Zurich-American Ins.
Southern California Gold Products, Inc. (SCGP) purchased liability insurance from Northern Insurance Company of New York (Northern) and Maryland Casualty Company (Maryland), both affiliates of Zurich-American Insurance Group (Zurich).[1] The policies covered, among other things, the defense of suits based on "advertising injury." American Defense Systems, Inc. (ADSI) sued SCGP for misappropriation of trade secrets and confidential information. The complaint alleged SCGP falsely represented on its internet website that it had an affiliation with the United States military and that its armor solution products had been tested and approved by the military. The complaint also alleged that the website contained pictures of ADSI's products which SCGP claimed were its own and that SCGP falsely asserted it had an ongoing affiliation with ADSI.
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