The Delaware Supreme Court upheld a lower court decision requiring an insurance company to pay its share of a settlement that came out of a buyout of Dole Foods.
Chancery Court ruled that in 2013, 40 percent of Dole owner David Murdock, working with the fruit company president, had manipulated the stock price downward as part of a successful effort to take the publicly-traded company private.
Shareholders sued after the buyout.
The Delaware court ruled that shareholders were entitled to $148,190,590. A separate settlement in Texas added to Dole’s costs, which the company and insurers paid.
One company, RSUI Indemnity, claimed it was not on the hook for paying its share of the settlements, claiming the Superior Court had made a number of errors in its decision. RSUI claimed that the insurance policy carried on directors of the company did not cover cases of fraud.
However, the high court ruled that the lower court had made no errors and ordered the company to make the required payment under the policy. Other insurers had already agreed on payment after some legal wrangling.
(See a copy of the decision below)
https://storage.googleapis.com/delawarebusinessnow-cdn/2021/03/Supreme-insurnce-Doel-opinion.pdf
