Delaware Supreme Court Affirms That Bump-Up Exclusion In D&O Insurance Does Not Apply To Securities Claims Arising Out Of An M&A Transaction

On January 27, 2026, in an opinion authored by Justice Valihura, the Supreme Court of Delaware affirmed a decision by the Delaware Superior Court granting a plaintiff company’s motion for summary judgment against its insurers in a directors and officers (“D&O”) insurance denial case. Illinois Nat'l Ins. Co. v. Harman Int'l Indus., Inc., No. 47, 2025 (Del. Jan. 27, 2026). The Court held that the underlying settlement of a securities class action alleging inadequate disclosures in connection with... By: A&O Shearman