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Because of "ambiguous" policy language in a complicated insurance contract, a directors and officers insurer may be liable for more than $600,000 in legal
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8th Circ. Revives Headphone Maker s D&O Coverage Battle
Law360 (May 11, 2021, 2:34 PM EDT) The Eighth Circuit on Tuesday revived a headphone manufacturer s suit seeking to force Allied World Specialty Insurance Co. to cover investor allegations that the manufacturer s director misappropriated a $3.5 million settlement, rejecting a trial court s application of a contractual liability exclusion.
Verto Medical Solutions LLC and its founder Seth Burgett s Missouri federal suit can proceed against Allied World for defense of claims they breached reallocation agreements with investors by withholding $1.6 million from the settlement with a former business partner of Verto, the panel said. If the insurance policy seems unclear, it is, the Eighth Circuit panel said, finding uncertainty over.