Insurer declining to bite on pita-chip class action

An insurance company says it does not need to dip into defending Walmart Stores Inc. and Basic Grain Products Inc. over pita chips that a class action suit says were misclassified as all-natural when the chips contained unnatural, synthetic or artificial ingredients. 

Erie Insurance Exchange, a subsidiary of Erie Insurance Group, filed a complaint against the two companies seeking declaratory judgment, claiming it has no duty to indemnify Walmart in a suit over the pita chips, according to a report posted on CookCountyRecord.com on Wednesday.

According to the complaint filed in Cook County Court in Chicago, defendant Walmart seeks coverage under the insurance policy that the insurer issued to defendant Basic Grain. Meanwhile, the insurer is claiming that’s not the terms of Basic Grain's insurance policy, according to the article.

The insurer is seeking declaratory judgment, award of attorney fees, costs of action and other relief, according to the article.