8th Circ. Revives Headphone Maker's D&O Coverage Battle : vi

8th Circ. Revives Headphone Maker's D&O Coverage Battle


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8th Circ. Revives Headphone Maker's D&O Coverage Battle
Law360 (May 11, 2021, 2:34 PM EDT) -- The Eighth Circuit on Tuesday revived a headphone manufacturer's suit seeking to force Allied World Specialty Insurance Co. to cover investor allegations that the manufacturer's director misappropriated a $3.5 million settlement, rejecting a trial court's application of a contractual liability exclusion.
Verto Medical Solutions LLC and its founder Seth Burgett's Missouri federal suit can proceed against Allied World for defense of claims they breached reallocation agreements with investors by withholding $1.6 million from the settlement with a former business partner of Verto, the panel said.
"If the insurance policy seems unclear, it is," the Eighth Circuit panel said, finding uncertainty over...

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