In a March 2, 2017 decision, McKool Smith secured a decisive victory for its clients Verizon Communications Inc., Verizon Financial Services LLC and GTE Corporation (collectively, “Verizon”), in a Delaware Superior Court decision finding that its insurers must provide coverage for tens of millions of dollars in legal fees and costs incurred in successfully defending against a $14 billion lawsuit filed against Verizon in connection with the spin-off of its directories businesses, which later filed for bankruptcy. The Delaware court granted summary judgment to Verizon, finding that the policy’s “Securities Claim” provision could be read to encompass a lawsuit alleging a violation of any statute or rule, including a common law rule, that must be followed to properly engage in a securities transaction, and that the lawsuit against Verizon contained such allegations.
Law360's report on the decision can be found here.
