Verizon Trumps AIG, Travelers in $95 Million Spinoff Lawsuit

Verizon Communications Inc. defeated its insurers’ attempt to deny paying a $95 million reimbursement of a securities lawsuit settlement tied to a spinoff.

Verizon’s directors and officers insurance policy covers securities claims and the bankruptcy trustee who sued Verizon was standing in the shoes of securities holders, said Judge Eric M. Davis of the Superior Court of the State of Delaware. The ruling was decided on Oct 18 and unsealed Wednesday.

The insurance policy was issued by units of AIG, the Travelers Cos., AXA XL, Tokio Marine Holdings, AXIS Capital Holdings and State National Companies.

Verizon put some of its ...