Northrop Grumman Owed Defense Costs From Insurers for Merger Row

A Northrop Grumman unit can tap multiple directors and officers’ liability insurance policies to help pay for litigation over disclosures tied to a past acquisition.

The Tuesday ruling, largely in favor of Northrop Grumman Innovation Systems Inc. (NGIS), pares down the “sprawling” dispute involving more than a dozen insurers, said Judge Paul R. Wallace of the Superior Court of Delaware.

NGIS, which ran Northrop Grumman’s space and defense business, bought Orbital ATK in 2018, inheriting some legal claims brought by investors against ATK.

The legal claims stem from a 2015 merger between Orbital Sciences Corp. and Alliant Techsystems Inc. that ...