Nationwide Agribusiness Insurance Company has filed a lawsuit seeking to share the defense cost burden of a class action suit against pet food company Blue Buffalo.
The Blue Buffalo class action
In March 2025, a class action complaint (Ryan Walsh and Diana Walsh v. Blue Buffalo Co. Ltd., United States District Court, Northern District of Illinois, Eastern Division) was filed against Blue Buffalo in Illinois.
The original complainants alleged that from at least 2017 through 2022, they exclusively fed their dog Blue Buffalo food. They claim that the company's "unfair and deceptive" advertising painted the food as healthy and safe, while failing to disclose the potential for the food to cause adverse cardiac functions. They also accused Blue Buffalo of failing to follow industry standards and best practices, failing to warn of known dangers, failing to take reasonably available steps to prevent the food from containing ingredients more likely to have cardiac effects and failing to promptly inform customers when the company learned its dog food could cause adverse cardiac function in pets.
Class members are seeking compensatory damages and injunctive relief; including requiring Blue Buffalo to educate consumers about all known dangers associated with the dog food, provide written warnings to consumers regarding the food, make changes to marketing campaigns and pull the dog food from the marketplace until such defects can be corrected, and customers are made aware of the alleged dangers of the food.
Nationwide's lawsuit
According to the lawsuit, Hartford issued a commercial general liability policy to Blue Buffalo for the period of February 12, 2016, to February 12, 2017. Upon that policy's expiration, Nationwide issued a commercial general liability policy to Blue Buffalo covering the period of February 12, 2017, to February 17, 2018, with liability limits of $1 million per occurrence. The policy was allegedly renewed on February 12, 2018 and canceled by Blue Buffalo on June 1, 2018.
Nationwide also reportedly issued a commercial umbrella policy with liability limits of $10 million per occurrence to Blue Buffalo, which was effective from February 12, 2017, to February 17, 2018. The umbrella policy was renewed on February 12, 2018, with limits reduced to $5 million per occurrence, and canceled by Blue Buffalo effective June 1, 2018.
The suit claims that after Blue Buffalo's coverage through Nationwide ended, it was then insured under fronting policies subject to a $5 million retention that can only be satisfied by settlements or judgments. Under the fronting policies, Nationwide says the dog food company is responsible for the defense of any suit that seeks damages for an occurrence during the time those policies were in effect.
The suit states, in part: "Nationwide is entitled to a declaration that it is only liable for a pro rata share of the costs to defend the Class Action because the Complaint can be read to alleged damages or injury before and after the coverage periods afforded by the Nationwide Policies. Nationwide is entitled to reimbursement of defense costs and attorney's fees incurred in defending Blue Buffalo in the Class Action which should have been paid and are the responsibility of Blue Buffalo and Hartford."
Nationwide has requested a jury trial, asking the court to:
- Declare that Blue Buffalo is liable for its pro rata share of the costs to defend the class action;
- Declare that the Hartford is liable for its pro rata share of the costs to defend the class action;
- Award Nationwide Agribusiness Insurance Company reimbursement of defense costs and attorney's fees incurred in defending Blue Buffalo in the class action, which Nationwide says should have been paid and are the responsibility of Blue Buffalo and Hartford;
- Award Nationwide its attorney's fees and costs in the action; and
- Award such other and further relief allowed by law that the court deems just and proper.
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