Travelers Beats St. Croix Mall on Derivative Suit Coverage

A Travelers Cos. unit won its bid to avoid covering a derivative shareholder suit against current and former directors and officers of a mall in the US Virgin Islands.

An exclusion for claims by shareholders who own more than 5% of a company’s stock barred coverage, the US District Court for the District of the Virgin Islands ruled Tuesday.

Sunshine Shopping Center Inc. and the executives didn’t dispute the interpretation of the exclusion, but argued the provision would render any coverage for derivative claims illusory because all its shareholders owned more than 5% of its stock.

After Travelers Excess & ...