Court of Chancery Permits Settlement of Suit with Suit To Be Filed Against Insurers
Posted In Derivative Claims
In re Electronics for Imaging Inc. S’holders Litig., C.A. 2797-VCL (Del. Ch. Sept. 4, 2008)
It is common for the settlement of a derivative suit to be funded by the D&O insurers. Here, however, in a twist to that common event, the Court upheld a settlement where the company is permitted to sue the D&O insurers, with counsel for the stockholder plaintiff as its attorneys, to force the insurers to fund.
Tags: Case Summaries, Derivative ClaimsShare