Nationwide Unit Sues Smart Thermostat Firm Over Shareholder Case

A Nationwide Mutual Insurance Co. unit is suing a smart thermostat technology company, arguing a directors and officers liability insurance policy bars coverage for shareholder litigation.

A provision in California’s insurance code limiting payments for a policyholder’s willful conduct and a policy exclusion over executive pay preclude coverage for the underlying suit against EcoFactor Inc., Scottsdale Insurance Co. said in a complaint filed Tuesday in the US District Court for the Northern District of California.

The underlying litigation in the Delaware Chancery Court alleged that EcoFactor and several of its directors entered into a scheme to dilute certain stockholders’ ownership ...