Lead Producer Gets Limited Win on Antitrust Insurance Coverage

A lead recycler and producer is entitled to insurance coverage for an investor lawsuit alleging antitrust violations, but carriers offering excess coverage for claims against directors and officers are off the hook because a primary policy imposes a cap on payments, a federal court ruled.

The underlying litigation brought by European investor groups, alleging EB Holdings II and its subsidiaries used an illegal price-fixing scheme to indirectly inflate their securities’ value on the secondary market, counts as a covered antitrust claim, the US District Court for the District of Nevada said in a Feb. 27 order.

However, the primary insurance ...