Delaware Supreme Court Affirms D&O Coverage

Chair of Olshan’s Insurance Coverage Law Practice Anthony Crawford authored an article for Harvard Law School Forum on Corporate Governance entitled “Delaware Supreme Court Affirms D&O Coverage.” In the article, Anthony explains that Delaware recently affirmed insurance coverage for a $28 million federal securities class action settlement, finding that certain D&O policies’ “bump‑up” provision did not apply to exclude the settlement, even though the underlying Section 14(a) claim alleged inadequate deal consideration in connection with a merger. “The nuances of D&O policy wording can significantly impact coverage and may lead to coverage disputes,” he writes. “Policyholders should review their D&O policies for bump‑up wording and work with their brokers to negotiate favorable language.”