Insurer Seeks To Avoid Coverage for Galaxy Gas Lawsuits Over Inhalation Injury

Maker of Galaxy Gas allegedly lied on its insurance applications, failing to mention it faced investigations over the sale of nitrous oxide canisters.

As a growing number of consumers begin to file Galaxy Gas lawsuits over severe injuries that resulted from inhaling gas from the flavored nitrous oxide canisters, the manufacturer now faces a lawsuit brought by its own insurance company, which seeks to invalidate coverage for the claims.

In a complaint (PDF) filed in the U.S. District Court for the Northern District of Georgia on February 19, Gemini Insurance Company seeks to void or rescind its insurance policy with Galaxy Gas LLC, indicating that the company made “material and/or fraudulent misrepresentations and omissions during the application and underwriting process.”

The filing comes as Galaxy Gas, Amazon.com and other retailers face a growing number of nitrous oxide lawsuits brought by individuals throughout the U.S., each raising similar allegations that they suffered devastating injuries, including nerve damage, brain damage, B12 deficiency, paralysis and other complications after inhaling the gas.

Although nitrous oxide is traditionally sold for use as an anesthetic in medical settings or as a propellant for food preparation, the canisters have increasingly been marketed directly to consumers through smoke or vape shops, as well as through Amazon, Walmart and other major retailers.

Inhaling the gas can cause a brief euphoric high, resulting in the substance acquiring the street term “whippets,” and companies like Galaxy Gas introducing a variety of products in recent years that feature colorful packaging and sweet or fruity flavors, which are often sold with accessories designed to facilitate inhaling the gas.

Last year, the U.S. Food and Drug Administration (FDA) issued a nitrous oxide inhalation warning, after health departments nationwide reported a surge of incidents and injuries linked to the products, and nitrous oxide injury lawyers are now pursuing claims for individuals throughout the U.S., attempting to hold Galaxy Gas and other companies accountable for marketing these dangerous products directly to consumers, as part of an effort to promote the illegal inhalation of the gas.

With its lawsuit, Gemini Insurance argues that it should not have to cover the cost of the growing nitrous oxide litigation against Galaxy Gas, claiming the company misled Gemini about its sales of the gas canisters.

According to the complaint, Galaxy Gas first submitted an insurance application to Gemini in August 2024. However, Gemini claims the company lied on the application by saying that its products had never been the subject of an investigation, enforcement action or notice of violation of laws or regulations.

Gemini indicates that Galaxy Gas knew it was under investigation in Louisiana as early as March 2024 as part of a probe into the company’s retail sales of nitrous oxide. In addition, news outlets had reported problems with Galaxy Gas’s nitrous oxide sales as early as November 2023.

“If Galaxy Gas had disclosed the prior, potential, or pending claims against it; investigations into Galaxy Gas’s products; Galaxy Gas’s complete insurance history; and/or material changes to its operations to Gemini during the underwriting process, Gemini would not have issued the Gemini Policies to Galaxy Gas as written.”

– Gemini Insurance Company v. Galaxy Gas LLC

Gemini says it is aware of several Galaxy Gas nitrous oxide lawsuits involving physical injuries and deaths suffered by consumers. The insurer claims that it should not have to cover any settlements or verdicts associated with the lawsuits, because the company allegedly misled the insurer when applying for coverage.

As a result, Gemini is asking the court to cancel the policy altogether and treat it as if it never existed, claiming Galaxy Gas concealed important information and made false statements during the underwriting process.

Nitrous Oxide Lawsuits

Despite growing litigation and public health warnings, Galaxy Gas and other nitrous oxide canister brands, including Baking Bad, Cosmic Gas, HOTWHIP, InfusionMax, MassGass, Miami Magic and Whip-It!, continue to sell their products through Amazon.com, smoke shops, vape stores, gas stations and other online retailers.

Plaintiffs in nitrous oxide injury lawsuits claim manufacturers and distributors specifically sold the products for illegal use, marketing them with fruity and candy-like flavors, in colorful canisters, and in large volumes unnecessary for culinary use.

Plaintiffs involved in the lawsuits say they have suffered serious injuries, including:

Nitrous oxide attorneys are currently offering free consultations to individuals and families who may be eligible for compensation through a Galaxy Gas lawsuit, or lawsuit against another nitrous oxide canister manufacturer.

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