As published in Law360: “Towers Watson’s insurers must cover the settlements in two proposed class actions claiming that its shareholders were underpaid during its merger with Willis, a Virginia federal court said, ruling that the insurers could not rely on a ‘bump-up’ exclusion to escape coverage.”
“The underlying suits claim that information was withheld from shareholders of professional services firm Towers Watson & Co. when its merger with insurance broker Willis Group Holdings PLC was proposed, resulting in shareholders receiving less consideration than the true value of their shares, according to court filings.”
“Under the bump-up exclusion in Towers Watson’s policies, if there is a claim that the price paid for the acquisition of a company is inadequate, the amount of the settlement that increases that price will not be covered by the policies.”
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