Chubb, AIG Lose Bid to Reverse M&A ‘Bump Up’ Insurance Ruling

A contentious directors and officers insurance provision doesn’t bar Chubb Ltd. and American International Group Inc. from covering Harman International Industries Inc.'s settlement with shareholders in post-M&A litigation, Delaware’s top court ruled, handing a win to corporate policyholders.

The “bump up” exclusion doesn’t apply because the insurers failed to show that the settlement represented an increase in the allegedly inadequate deal price, the Delaware Supreme Court ruled Tuesday, affirming a lower court order.

“Based on the Superior Court’s consideration of the record evidence, we hold that the court did not err in determining that the Insurers did not meet their ...