Delaware court expands D&O insurer liability through meaningful linkage ruling

The January 8 decision in Forte Biosciences, Inc. v. Wesco Insurance Company, Beazley Insurance Company, Inc., and Palms Insurance Company, Limited involves a biotech company and three insurers locked in a dispute over which policy should cover a 2023 shareholder lawsuit. Superior Court Judge Patricia A. Winston sided with Forte Biosciences, finding that Wesco Insurance Company and Palms Insurance Company, Limited must cover the suit under their Year 1 policies running from June 2022 to June 2023, even though the complaint was filed after those policies expired.

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