Genzyme Corp. v. Federal Insurance

DYK, Circuit Judge.

Genzyme Corporation (“Genzyme”) appeals from a district court order dismissing Genzyme’s complaint against Federal Insurance Company (“Federal”) for failure to state a claim. Genzyme sought to recover its costs in settling a shareholder class action under a corporate and director and officer liability insurance policy (“the policy”) issued to Genzyme by Federal. Federal denied coverage and Genzyme sued, seeking damages of $10 million plus other relief. The district court held that Genzyme’s loss was not insurable as a matter of Massachusetts public policy. We disagree with…