What happened: PepsiCo alleges its insurers refused to defend it in San Francisco's ultra-processed food lawsuit despite covering similar individual claims
Who's involved: PepsiCo (plaintiff) and four defendant insurers including ACE American Insurance Company
What's at stake: Defense costs and potential indemnity across multiple layers of liability, umbrella, and excess policies
Why it matters: The coverage question could shape how insurers respond to a growing wave of ultra-processed food product claims
Where it stands: Complaint filed October 23, 2026; removed to federal court November 5, 2026
PepsiCo's insurer agreed to cover lawsuits claiming the company's snack foods made people sick. Then San Francisco filed the same claims on behalf of an entire city - and the insurer said no.
Now PepsiCo is suing.
The food and beverage giant filed a complaint on October 23, 2026, in New York Supreme Court against ACE American Insurance Company, ACE Property and Casualty Insurance Company, Westchester Surplus Lines Insurance Company, and Vigilant Insurance Company. According to the filing, the insurers breached their policies by refusing to defend PepsiCo in the underlying ultra-processed f...