A federal appeals court handed a win to insurers on a controversial directors and officers provision, ruling that the “bump-up” exclusion barred coverage for a settlement—including a portion that went toward attorneys’ fees—in post-merger shareholder litigation against Willis Towers Watson Plc.
The settlement represented an effective increase, or “bump up,” of the deal price, precisely what the insurance provision is intended to bar, the US Court of Appeals for the Fourth Circuit said in a Wednesday opinion, affirming a lower court order. The ruling is a win for Towers Watson’s insurers, including units of