Liberty, Insurers Take Hit on $1.6 Billion IBM Judgment Policy

Liberty Mutual has backed out of at least two potential litigation insurance deals after a $1.6 billion judgment it underwrote was reversed, according to three people familiar with the situation.

The company was among a group of insurance providers that issued policies covering the massive 2022 judgment for Houston-based BMC Software in a suit against IBM, according to two people with knowledge of the matter. An appeals court last week overturned the decision, siding with IBM and leaving Liberty and other insurers on the hook.

The judgment was insured for between $500 million and $750 million in total, according to ...