Chocolatier's Claims Make the Bar

A Delaware Superior Court judge has ruled that the settlement costs of a class-action lawsuit against the chocolate company Godiva, are not excluded from coverage under either Godiva’s D&O policy with Endurance American Insurance Company (Endurance) or Godiva’s excess policy with National Union Fire Insurance Company, a subsidiary of American International Group (National Union). The case is G-New, Inc. v. Endurance Am. Ins. Co., 2022 Del. Super. LEXIS 371 (Del. Super. Ct. 2022).

Godiva was hit with a class-action lawsuit in 2019, facing 13 counts of consumer protection and common law violations in California and New York. The plaintiffs in that lawsuit claimed the statement “Belgium 1926” appearing on labels for Godiva confections deceived consumers about the candy’s origins. The suit went to mediation, where the parties eventually settled; Godiva is expected to pay $20 million in attorney fees and monetary relief in addition to associated fees and class representative awards, pending final approval of the settlement.