On March 16, 2022, in a unanimous decision the Delaware Supreme
Court affirmed a Superior Court ruling that a securities class
action and a later-filed opt out action were related claims, and
thus the subsequent action was excluded from coverage under
later-issued policies. First Solar, Inc. v. Natl. Union Fire Ins.
Co., C.A. No. 217, 2021 (Del. Mar. 16, 2022). In doing so,
the Delaware Supreme Court rejected the "fundamentally
identical" relatedness standard applied by the lower court and
applied the relatedness standard defined by the plain meaning of
the policies.
DISCUSSION
The insured, First Solar, manufactured solar panels and sold
photovoltaic power plants. In March of 2012, First Solar was sued
in a securities class action alleging that the company violated
federal securities laws by making false or misleading public
disclosures (the Smilovits action). Among other
things, the Smilovits plaintiffs alleged that
from April 30, 2008, to February 28, 2012,
