Trustees for a bankrupt online solar energy company and its ex-CEO aren’t allowed to settle an insurance dispute without the former executive’s consent, the Fourth Circuit said.
David Levine, the former head of Geostellar Inc., is covered by a policy for the company’s directors and officers through Tokio Marine Holdings Inc. unit Philadelphia Indemnity Insurance Co.
That policy requires Levine’s consent, not the trustees’, to reach any settlement, according to the US Court of Appeals for the Fourth Circuit’s Wednesday opinion affirming a lower court’s decision.
Geostellar filed Chapter 11 in 2018, saying Levine defrauded and bankrupted the company, the ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.