Willis Towers Watson at Impasse With Insurers in Bump-Up Appeal

A shareholder suit over the 2016 deal that formed Willis Towers Watson Plc sought compensatory damages over inadequate disclosures, not insufficient deal value, and should be covered by insurance, the global broker and advisory firm told a federal appeals court.

The arguments Tuesday before the US Court of Appeals for the Fourth Circuit focused on whether a settlement of a suit brought under Section 14(a) of the Securities Exchange Act represented an effective increase in consideration to Towers Watson shareholders that would be barred by a “bump-up” exclusion under directors and officers insurance policies.

The controversial insurance provision is driving ...