Illinois National Insurance Company and Federal Insurance Company v. Harman International Industries, Incorporated

Summary

The Court affirmed summary judgment for Harman, holding that the insurers failed to establish both requirements of the policies’ Bump-Up Provision. The underlying securities claim alleged inadequate deal consideration, but the insurers did not prove that the settlement represented an effective increase in the consideration paid in the transaction. The settlement class included persons who may not have received transaction consideration, and the record lacked evidence tying the settlement amount to the shares’ true value or to an increase in deal consideration.