Phusion Projects Inc. manufactures and distributes the alcoholic beverage Four Loko. The product contains alcohol in addition to caffeine, guarana, taurine and wormwood. Guarana is a plant that has one of the highest concentrations of caffeine in any plant. It’s often used as a supplement to energy drinks, including this one. Taurine is an organic acid or an amino acid that some research shows may be a contributing factor to improved athletic performances. Wormwood is an herb. Some uses of wormwood are said to be for digestive disorders and to increase sexual desires and stimulate the imagination. Wormwood is also used for healing wounds and countering insect bites. It is also used in some alcoholic beverages, such as vermouth and absinthe.
Phusion purchased insurance coverage from two members of the Liberty Mutual Group. Both of the insurance policies contained clauses that excluded coverage for bodily injury or property damage when Phusion could be held responsible by reason of causing or contributing to intoxication.
Phusion was sued by five separate plaintiffs. All of them alleged that the consumption of Four Loko caused their injuries in whole or in part.