A settlement paid by stocks rather than money is a covered loss that must be paid by an insurer, the Delaware Supreme Court has affirmed.
The state’s high court agreed with a lower court’s ruling that the definition of “loss” does not restrict coverage to cash payments or monetary amounts.
The rulings came in a dispute that arose when AMC Entertainment Holdings, Inc. (AMC) sought coverage for losses incurred in a settled lawsuit brought by AMC shareholders. AMC twice sought shareholder approval to amend its certificate of incorporation to increase the amount of authorized common