Aug 18 (Reuters) -

CVS Health ( CVS ) is not entitled to coverage from

insurers, including AIG and Chubb, against

thousands of lawsuits over its role in the nation's opioid

crisis, Delaware's highest court ruled on Monday.

The Delaware Supreme Court concluded that governments,

hospitals, doctors and benefit plans that sued CVS sought

damages for economic losses, not individualized "bodily injury"

or "property damage" covered by CVS's general liability

policies.

It also rejected the argument that CVS' $5 billion

nationwide settlement of opioid claims in November 2022 showed

that the pharmacy chain and benefits manager had been sued for

bodily injury.

"The national settlement agreement funds expenses in

response to the opioid crisis at-large, but it does not change

the fact that the underlying lawsuits do not seek specific

damages tied to individualized injuries," Chief Justice Collins

Seitz wrote for a unanimous court.

CVS said it disagreed with the decision, and that it trains

its pharmacists to make the best decisions on patients' behalf

and in compliance with the law.

AIG, Chubb and their lawyers did not immediately respond

to requests for comment.

Many insurers have been sued by pharmacy chains, drugmakers

and others seeking coverage for opioid-related bills.

Chains had long argued they were merely filling doctors'

prescriptions, but critics said the large quantities being

dispensed and the potential for diversion were red flags.

Walgreens and Walmart ( WMT ) agreed to pay more

than $8 billion in similar settlements.

CVS, based in Woonsocket, Rhode Island, had been appealing

two Delaware Superior Court decisions denying insurance coverage

in more than 2,300 lawsuits, according to Monday's decision.

Governments complained about increased spending to treat

opioid addiction, hospitals reported strains on their health

systems, and third-party payors such as employee benefit funds

cited costs of prescription purchases and addiction treatment.

The Delaware Supreme Court ruled in Chubb's favor in a

similar case involving Rite Aid in 2022. CVS claimed that its

own policies offered broader coverage, but the court found the

policies "similar in all material respects" to Rite Aid's.

The case is In re CVS Opioid Insurance Litigation, Delaware

Supreme Court, No. 482.