Biotech Firm Scores Win in D&O Insurance Coverage Dispute

Directors and officers insurance policies afford coverage for a 2023 lawsuit against a biotech company brought by a hedge fund seeking influence over board directorships, a Delaware state court ruled.

Although the suit was brought outside the policy period, it was covered under the policies issued by Wesco Insurance Co.—an AmTrust Financial Services Inc. unit—and Palms Insurance Co. because it was meaningfully linked to a books-and-records demand Forte Biosciences Inc. had previously flagged for the insurers, the Delaware Superior Court said in a Thursday order.

Forte sued Wesco and Palms —as well as Beazley Insurance Co., which covered the biotech ...