Implications Of Genzyme: Loss Under A D&O Policy

Law360, New York (December 8, 2010, 2:51 PM EST) -- Recently, in Genzyme Corp. v. Federal Insurance Co., 2010 WL 3991739 (1st Cir. 2010), the U.S. Court of Appeals for the First Circuit construed the definition of loss in a directors and officers insurance policy and a so-called “bump-up” exclusion that precluded coverage for claims seeking an increase or “bump-up” in the consideration for the company’s securities.

The court applied these provisions to a settlement by Genzyme of a case alleging that a reorganization of Genzyme’s equity ownership structure resulted in an inadequate price to owners...
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