Contract analysis

I. BACKGROUND ON THE INSURED Meridian Consumer Brands LLC is a premium consumer products company specializing in the development, manufacture, marketing, and sale of skincare, personal-care, and over-the-counter dermatological products distributed through major retail, e-commerce, and direct-to-consumer channels throughout the United States and select international markets. Meridian was acquired in 2019 by Brindoval

II. DESCRIPTION OF THE OCCURRENCE / ADVERTISING INJURY A. The Adverse Party The advertising injury at issue was caused by Apex Naturals Inc. ("Apex"), a Delaware corporation headquartered at 75 Commerce Boulevard, Suite 300, Parsippany, New Jersey 07054. Apex is a mass-market and "clean-beauty" skincare company that competes directly with Meridian in the acne-treatment and general skincare product categories. For fis

III. HARM TO THE INSURED The false and misleading advertising campaign described above has caused, and continues to cause, substantial and quantifiable harm to Meridian across multiple dimensions. The categories of harm are summarized below. A. Revenue and Profit Losses The impact of Apex's "PuraClear Truth" campaign on DermaTrūe sales has been immediate, severe, and directly measurable. DermaTrūe revenue declined fr

IV. PRE-LITIGATION PROCEEDINGS AND ANTICIPATED LITIGATION A. Cease-and-Desist Correspondence and Apex's Response Upon first becoming aware of the "PuraClear Truth" campaign shortly after its June 2, 2025 launch, Meridian acted promptly to demand that Apex cease and desist from the false advertising. On June 18, 2025, Meridian's General Counsel, Derek Cho, sent a detailed cease-and-desist letter to Apex General Counse

1. False Advertising under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) — based on the literally false clinical-superiority claim, the materially misleading price-comparison claim, and the factually false "clean" ingredients claim, all of which were made in interstate commerce in connection with the advertising and promotion of goods.

2. Deceptive Acts and Practices under New York General Business Law § 349 — based on Apex's consumer-oriented conduct that is misleading in a material way and has caused injury to Meridian.

3. False Advertising under New York General Business Law § 350 — based on Apex's advertising that is materially misleading to a reasonable consumer.

4. Common-Law Unfair Competition — based on Apex's bad-faith misrepresentations designed to divert trade and consumer goodwill from Meridian to Apex.

5. Tortious Interference with Business Relations — based on Apex's false advertising that directly and proximately caused Kingsley Drug Stores LLC and potentially other retailers to reduce or terminate their business relationships with Meridian. E. Anticipated Relief Meridian intends to seek the following relief in the anticipated litigation: • Preliminary and permanent injunctive relief requiring Apex to immediately

V. APPLICABILITY OF THE POLICY / BASIS FOR COVERAGE Meridian submits that the false advertising campaign launched and maintained by Apex constitutes an "advertising injury" as that term is defined under the commercial general liability / advertising-injury endorsement of Policy No. NM-GL-2024-88173 issued by Northbridge to Meridian. Specifically, the Policy provides coverage for injury arising out of one or more "adv

VI. REQUESTS In light of the foregoing, Meridian respectfully requests that Northbridge Mutual Insurance Company take the following actions promptly:

1. Acknowledge receipt of this coverage notification in writing;

2. Assign a claim number to this matter and communicate such number to undersigned counsel;

3. Confirm that the advertising-injury endorsement under Policy No. NM-GL-2024-88173 provides coverage for the losses, damages, and defense costs described herein;

4. Identify the Northbridge claims adjuster and/or coverage counsel assigned to this matter, and provide direct contact information for such individual(s); and

5. Respond in writing within the timeframe required by the Policy and applicable law, including but not limited to the requirements of applicable state insurance regulations governing timely acknowledgment of and response to coverage notifications.

VII. RESERVATION OF RIGHTS By providing this notice, Meridian does not waive, and expressly does not intend to waive, any rights, claims, or defenses under the Policy, at law, or in equity. This letter is not intended to be, and shall not be construed as, a complete or exhaustive description of all facts, circumstances, damages, or legal theories that may be relevant to Meridian's claim for coverage. Meridian express

VIII. CONTACT INFORMATION AND DOCUMENT PRESERVATION All correspondence, communications, and notices from Northbridge regarding this claim should be directed to: Linda Osei, Partner Calderwood & Harkness LLP 600 Lexington Avenue, 30th Floor New York, NY 10022 Telephone: (212) 554-8024 Email: losei@calderwoodharkness.com with a copy to: Derek Cho, General Counsel Meridian Consumer Brands LLC 410 West 34th Street, 18th

1. Copy of Policy No. NM-GL-2024-88173 — Declarations Page

2. Cease-and-Desist Letter dated June 18, 2025 (D. Cho to T. Fischetti)

3. Apex Response Letter dated July 3, 2025 (H. Briggs / Caldwell, Briggs & Nolan LLP)

4. NAD Preliminary Recommendation dated August 15, 2025 (Case Ref. No. NAD-2025-01847)

5. Beacon Scientific Laboratories LLC — Lab Report No. BSL-2025-0412 (dated March 15, 2025)

6. Exemplar Screenshots and Copies of "The PuraClear Truth" Campaign Materials

7. Kingsley Drug Stores LLC — Notification Letter dated August 5, 2025