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Fourth Circuit: “Bump-Up” Exclusion Applies When Settlement Seeks to Cure Harms Associated with Undisclosed Conflict of Interest...

The United States Court of Appeals for the Fourth Circuit, applying Virginia law, has affirmed a district court’s ruling that a “bump-up” provision in a D&O policy applied to bar indemnity coverage for the settlement of...more

Bump-Up Provision Bars Coverage for Settlement of Post-Merger Claims by Shareholders of Target Company

On remand from the U.S. Court of Appeals for the Fourth Circuit, the U.S. District Court for the Eastern District of Virginia, applying Virginia law, has held that a bump-up provision in directors and officers liability...more

D&O Policy’s Professional Services Exclusion Does not Bar Coverage for False Claims Act Settlement

The Delaware Supreme Court has held that a professional services exclusion in a D&O policy does not bar coverage for a False Claims Act settlement. In 2017, a former employee of the insured mortgage loan company brought a...more

Capacity Exclusion Does Not Bar Coverage for Claims for Misconduct Allegedly Motivated By Outside Capacity

A California federal district court has held that a capacity exclusion in a D&O policy did not bar coverage for a claim against insured executives alleged to have taken actions for the benefit of another company because they...more

South Dakota Supreme Court Holds That Liquidator Can Make Claims for Coverage Up to Six Months After Expiration of Claims-Made...

The Supreme Court of South Dakota has held that a state insurance liquidator’s notice of a claim first made and reported four months after the insolvent insurer’s claims-made policy period had ended was within the policy’s...more

Delaware Trial Court Holds that Fraudulent Transfer Claim by Bankruptcy Trustee is a “Securities Claim”

Applying Delaware law, the Delaware Superior Court has held that a bankruptcy trustee’s fraudulent transfer claim constitutes a “Securities Claim” under a D&O policy. Verizon Commc’ns Inc. v. Nat’l Union Fire Ins. Co. of...more

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