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Merck Decision Provides Guidance to New York Companies, Lawyers, and Jurists About Insurance Coverage for Cyberattacks – A Pasich Attorney, Jeffrey Schulman & Stephen Wah Author New York Law Journal Article

Mar. 07, 2022

In 2017, Merck & Co. Inc. alleged that malware NotPetya damaged more than 40,000 of its computers and resulted in $1.4 billion in damages. Merck’s insurers denied coverage based upon a so-called “war” exclusion, arguing that Russia was responsible for NotPetya and utilized the malware as part of its ongoing hostilities against Ukraine. In an article for New York Law Journal, a Pasich attorney, Jeffrey Schulman and Stephen Wah examined a New Jersey state court’s recent ruling in favor of Merck, and how the court considered general principles of insurance policy construction as well as case law regarding the war exclusion.

The attorneys noted that although the decision applied New Jersey law, three decisions from New York courts featured prominently in the court’s analysis.

“For New York companies, lawyers, and jurists, the Merck decision provides guidance at a critical moment.  “’War’ exclusions may be increasingly tested as cyber crime and unconventional forms of hostilities proliferate,” the attorneys wrote.

Read the full article here.

Jeffrey L. Schulman
Managing Partner
Name a Northeast Trailblazer in 2021 by The American Lawyer
Stephen Wah
Managing Associate
Recipient of the Professor John Appel Award and Jacob Burns Medal

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