A state high court has ruled subsidiaries of American International Group and Chubb cannot use the so-called “bump-up” exclusion in denying coverage for a settlement in a securities lawsuit.
Late last month the Delaware Supreme Court affirmed a ruling from the state’s Superior Court that the bump-up provision “does not exclude coverage” to Harman International Industries, who was acquired by Samsung Electronics back in 2017 and then sued in a securities class-action lawsuit under allegations that Harman issued a false or misleading proxy statement to get shareholders to vote in favor of the deal at