A court in Delaware ruled on Wednesday that American International Group Inc. and Axa SA entities were not liable to injure a solar company in directors and officers' disputes during their claims.
Shareholders in Tempe, Arizona-based First Solar Inc. filed a class action lawsuit in Arizona in 2012 and charged the company with incorrectly reporting the reduction in its manufacturing costs, including allegations, according to the decision of the Delaware Supreme Court First Solar Inc. v. National. Union Fire Insurance Co. by Pittsburgh, PA and XL Specialty Insurance Co.
The AIG National Union provided cover for the suit and exhausted its policy, the decision said.
Since March 201
National Union and the XL unit XL Specialty denied coverage on the grounds that the second lawsuit was essentially identical to the lawsuit filed in 2012, and since the disputes were filed in 2013, where
First Solar sued the insurers in October and accused breach of contract. Both insurers submitted proposals to dismiss the case, which the court granted in its decision.
Both lawsuits "have significant similarities", including that they sued identical respondents, and the periods mentioned in the lawsuits "clearly overlap and cover the same 10 months of 2011," the decision states.
They also involve "the same fraudulent system – artificially raised share prices by incorrectly presenting First Solar's ability to produce solar energy at costs comparable to the costs of conventional energy production, "the decision states.
of the insurances ", the court said when it granted the insurers' proposal to dismiss the disputes.
An AIG lawyer had no comment, while XL and First Solar's lawyers did not respond to requests for comment.