Under Armour Loses D&O Insurance Appeal Over Accounting Cases

Directors and officers insurance coverage for Under Armour Inc.'s defense and settlement costs following government investigations into its public statements and certain accounting practices is capped at $100 million, a federal appeals court ruled.

Litigation and federal probes stemming from the two types of conduct should be treated as a single claim for insurance purposes because they were “logically or causally related,” the US Court of Appeals for the Fourth Circuit said in a Tuesday opinion, reversing a lower court ruling.

The decision comes as other courts have grappled with insurance language surrounding related claims, including when corporate policyholders ...