Sixth Circuit Affirms Coverage for Owens Corning Shareholder Class Action

CLEVELAND - The Sixth Circuit U.S. Court of Appeals on July 5 affirmed several rulings obligating an insurer to cover indemnification costs that Owens Corning paid directors and officers named as part of a shareholder class action. Owens Corning v. National Union Fire Insurance Co., No. 99-4275 (6th Cir.).

Owens Corning, along with several of its directors and officers, were named in a 1991 shareholder class action, which alleged that Owens Corning's filings with the SEC between 1988 and 1991 had misrepresented the company's future financial exposure to asbestos lawsuits.

The company filed a claim with National Union Fire Insurance …