A Delaware court ruled Wednesday that American International Group Inc. and Axa SA units were not obligated to indemnify a solar energy company in directors and officers litigation under their claims-made coverage.
Shareholders of Tempe, Arizona-based First Solar Inc. filed a class-action lawsuit in Arizona in 2012, charging the company had misrepresented the reduction of its manufacturing costs, among other allegations, according to the ruling by the Delaware Supreme Court in First Solar Inc. v. National Union Fire Insurance co. of Pittsburgh, PA and XL Specialty Insurance Co.
AIG unit National Union provided coverage for the suit and exhausted its policy, the ruling said.
Then in March 2014, a number of shareholders opted out of that litigation and filed a second suit alleging various defects and concealments by the company. Solar agreed to pay $19 million to settle the case.
National Union and XL unit XL Specialty denied coverage on