When it comes to risk, no business is immune. From contaminated products and cyberattacks to employment disputes and false advertising, multimillion-dollar claims can arise unexpectedly. The cases highlighted below show how quickly situations can escalate—and why proactively assessing coverage and exposures is essential for protecting your business.
Jury Awards $42.6 Million After Asbestos Contaminates Baby Powder — Product Liability
A Massachusetts jury determined an American multinational corporation must pay $42.6 million to an individual who developed mesothelioma after regularly using the company’s talc-based baby powder. According to the plaintiff’s attorney, the man had no occupational exposure to asbestos, and the personal use of the baby powder was the likely cause of his cancer. During the trial, jurors reviewed company documents that demonstrated the company’s knowledge of the asbestos contamination, its manipulation of scientific testing to maintain the product’s reputation, and its failure to adopt safer alternatives, ultimately finding the company liable for negligence and breach of warranty.
Food Company Anticipates a $350 Million to $400 Million Loss in Sales Following Cyberattack — Cyber
A Rhode Island-based food distributor is anticipating sales losses ranging between $350 million and $400 million after a cyberattack impacted its online systems in June. The company expects to limit the overall operational impact to the second quarter and has been working closely with its suppliers and customers to fully recover from the cyber event. According to the company’s president and CEO, the business incurred $20 million in expenses to address spoilage following the cyber event and spent $5 million on legal assistance, cybersecurity experts, and other incident-related costs. The company also expects to log a pre-tax and free cash flow loss between $65 million and $75 million.
University to Pay $21 Million in EEOC Settlement — Employment Practices Liability
A New York university has agreed to a $21 million settlement to resolve allegations of antisemitic harassment against Jewish employees following Hamas’ attack on Israel in October 2023. The Equal Employment Opportunity Commission (EEOC) charged the university with failing to prevent pervasive religious and racial harassment in violation of Title VII of the Civil Rights Act. The university voluntarily resolved the charges without admitting liability and will create a class claims fund for the affected employees. The institution also agreed to a separate $200 million fine and will implement compliance monitoring and other injunctive measures.
Soda Company Settles False Advertisement Lawsuit for Nearly $9 Million — Liability
A Texas-based soda company agreed to an $8.9 million settlement after a class action lawsuit alleged it falsely advertised that its carbonated prebiotic drinks were “gut healthy” with no scientific backing. Consumers who purchased the beverages between Jan. 23, 2020, and July 18, 2025, are eligible for compensation. The exact payout may vary for the company depending on the number of claims filed. According to the lawsuit, the beverage did not contain enough prebiotic fiber to make a difference in consumers’ gut health unless four or more cans were consumed. Plaintiffs, who allegedly paid a premium for the product, claimed any gut health benefits from drinking that much soda would be offset by the drink’s sugar content. The final approval hearing for the settlement is scheduled for Nov. 20, 2025.
No matter your industry or business size, the lessons from these cases are clear: risk is real, and the financial consequences can be substantial. Staying informed, evaluating your coverage, and addressing potential gaps can help protect your business from similar outcomes. For assistance with assessing your risks and coverage, contact us today.
About The Plexus Groupe
The Plexus Groupe is a Top 100 independent insurance advisory firm, backed by our knowledgeable team, cutting-edge resources, and a global network of partnerships. We specialize in comprehensive services across Business Insurance, Employee Benefits, Private Client solutions, Retirement Services, and Mergers & Acquisitions.
As a proud partner of Assurex Global – the world’s largest association of privately held insurance brokers – our risk management professionals provide tailored solutions to meet the diverse needs of our clients worldwide.
Headquartered in Deer Park, III., with additional offices across the U.S., The Plexus Groupe is committed to delivering personalized service, innovative solutions, and strategic insights that empower clients to thrive in today’s complex environment. Visit www.plexusgroupe.com to learn more.
This publication is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice. Readers should contact a licensed insurance professional or attorney for appropriate advice. ©2025 Zywave, Inc. All rights reserved.
