Insurers need not cover $27 million M&A settlement: Judge

Insurers need not cover $27 million M&A settlement: JudgeAn American International Group unit and two other insurers don’t have to reimburse a policyholder’s $27 million shareholder settlement because it effectively bumped up the purchase price of an acquisition deal, a Delaware Superior Court judge ruled. That case settled for $27.1 million, paid to shareholders on a per-share basis. National Union, Chubb unit Ace American Insurance, and Jersey City, New Jersey-based Arch Insurance denied coverage for the settlement, prompting Zayo’s suit. Judge Wallace found the settlement’s “real result” was to increase the consideration shareholders received: “Mr. In addition, the settlement occurred after a year of legal discovery, “supporting the notion that the Settlement represents an increase in consideration and not mere litigation avoidance,” the judge wrote.