The Superior Court’s Feb. 28, 2025 memorandum opinion centered on the policy wording. The policies defined “Loss” as: “damages, judgments, settlements, pre-judgment and post-judgment interest or other amounts (including punitive, exemplary or multiplied damages, where insurable by law) that any Insured is legally obligated to pay and Defense Expenses, including that portion of any settlement which represents the claimant’s attorneys’ fees.” Midvale argued that stock is not money and therefore cannot be “paid,” so the settlement did not constitute a covered “Loss.” The court disagreed, concluding that the definition did not restrict coverage to cash payments and declining to insert such a limitation.
Delaware Supreme Court backs AMC on D&O stock settlement “loss” fight
