Allied World Drops ‘Bump Up’ Case Against Berkley Insurance Unit

A Fairfax Financial Holdings Ltd. insurance unit dropped its suit against a W. R. Berkley Corp. unit over coverage for a $9 million settlement of a shareholder class action related to IT firm Covisint’s merger with OpenText Corp.

The US District Court for the Eastern District of Michigan dismissed Allied World National Assurance Co.'s suit with prejudice on Tuesday after the insurer filed a notice of voluntary dismissal.

• Allied World sued Berkley Insurance Co., which also covered Covisint, in April, arguing that a “bump-up exclusion” in its excess policy barred coverage for the settlement, which it said Berkley had agreed ...