Press Release
Source: Bloomberg Law
Press Release
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
01.28.25
A Delaware state court recently ruled in favor of Harman International Industries, a subsidiary of Samsung Electronics, in a dispute over the “bump-up” exclusion in directors and officers (D&O) insurance.
According to Bloomberg Law, many policyholder attorneys agree that shareholder litigation following M&A transactions should fall within the scope of coverage. In a recent interview, Insurance Recovery & Advisory partner Tamara Bruno described them as “core D&O claims.”
“If the insurance carriers don’t want to take on that kind of risk, they need to say that explicitly in their policies and then face the market consequences as to who wants to buy these policies,” Bruno said. She added that, for insurers, the bump-up exclusion is an “institutional issue,” which may explain why they are seeking guidance from courts.
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