Law360 Quotes Partner Alex Roje on Delaware Superior Court Decision Excluding Coverage for Disgorgement


(October 28, 2022) Lathrop GPM Partner Alex Roje was recently quoted in an article by Law360. Experts told Law360 that a Delaware Superior Court decision that a bankruptcy trustee's fraudulent transfer suit against Verizon is a covered securities claim will likely help other Delaware businesses seeking coverage in similar circumstances. The court rejected arguments by the insurers that the disputed settlement was disgorgement and barred from coverage under an exclusion for claims that are uninsurable as a matter of law. Even assuming the settlement was disgorgement, the exclusion did not apply as the policy language at issue barred coverage only for matters uninsurable as a matter of law and disgorgement settlements are insurable under Delaware law, the court held. 

"This exclusionary language that refers to 'uninsurable as a matter of law?' That is virtually in every D&O policy I've ever seen," Roje said. "It's very common language and so for that reason I think it's an important decision."

Read the full article here [SUBSCRIPTION REQUIRED]: Verizon's Win Boosts Del. Businesses In Bankruptcy Fights (