Insurer Sues TycoIS for Compromised Security System

NEW YORK — An insurer for Eli Lilly & Co. filed a lawsuit against Tyco Integrated Security (TycoIS) in a Connecticut federal court Monday, claiming that a faulty security system led to the 2010 theft of roughly $80 million in pharmaceuticals from Lilly’s distribution facility in Connecticut.

According to the complaint filed by Pittsburgh-based National Union Fire Insurance Co., less than a month before the break-in, TycoIS, then known as ADT Security Services, submitted a confidential evaluation that identified weaknesses with the installed system. The report explicitly identified the location of 13 labeled security cameras in the warehouse, as well has highlighted specific faults and blind spots in images captured by each camera, Law 360 reports.

The insurance company claims that the intruders, Amaury and Amed Villa, had “unique and confidential” information about the security system’s weaknesses. The duo, along with other alleged burglars, had broken into other ADT-secured warehouses in Florida, Illinois and Texas that had similar security lapses. National Union asserts that ADT knew of the intrusions, but failed to notify Eli Lilly of the incidents or safeguard confidential information from the security evaluation.

During the March 13, 2010, incident, the Villas were able to rappel to an area of the warehouse not monitored by video surveillance and disable the security system’s master controls. The duo swiped $80 million worth of antidepressant Prozac and schizophrenia drug Zyprexa, prompting National Union to pay Lilly more than $42 million under its insurance policy.

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