AMC Gets Delaware Court Win on Insurance for Investor Settlement

Shares issued by AMC Entertainment Holdings Inc. to settle investor litigation are potentially covered losses under an excess directors and officers policy, Delaware’s top court ruled.

The Delaware Supreme Court’s Tuesday order affirmed a lower court ruling opening the door for AMC to pursue coverage from Midvale Indemnity Co., the only remaining insurer in the case.

AMC first sued its D&O insurers in Delaware Superior Court in May 2023, seeking coverage for an underlying investor suit over its plan to convert “APE” units to common stock. The entertainment giant dismissed claims against all other insurer defendants in the case—including units ...