GLMC Legal is proud to share that Raul Gastesi was recently featured in Bloomberg Law in an article examining a high-profile Delaware case involving Blue Bell Creameries and the limits of insurance coverage in corporate litigation.

The article, titled “Blue Bell Case Highlights Risks of Skimping on Insurance Coverage,” explores an ongoing first-of-its-kind oversight liability trial tied to shareholder derivative claims against Blue Bell’s senior leadership following the company’s 2015 listeria outbreak. The case highlights an important issue for companies, boards, and executives: what happens when the insurance coverage in place does not match the nature of the claims being brought.

At the center of the dispute is the difference between commercial general liability (CGL) insurance and directors and officers (D&O) insurance. While CGL policies are typically designed to address bodily injury or property damage claims, D&O policies are generally intended to protect corporate leaders against claims involving management decisions, fiduciary duties, and alleged wrongful acts.

In the Bloomberg Law article, Raul Gastesi provided insight into why Blue Bell’s attempt to rely on general liability coverage ultimately fell short. Although the company made a reasonable argument based on the underlying listeria outbreak, the courts rejected the position because the shareholder lawsuit was not seeking damages for personal injury. Instead, the claims centered on alleged economic losses caused by fiduciary failures, which fall outside the typical scope of CGL coverage.

Raul also helped explain the broader risk companies face when their insurance programs are not properly structured. In corporate litigation, especially cases involving oversight claims, fiduciary duties, or shareholder derivative actions, D&O coverage is often the more reliable and appropriate form of protection.

The article also emphasizes that D&O policies are commonly structured in a way that favors funding defense costs and supporting settlement efforts, rather than forcing companies and executives into the uncertainty of trial. For business leaders, the lesson is clear: insurance coverage should not be treated as a routine administrative item. It should be reviewed carefully and aligned with the real risks facing the company and its leadership.

GLMC Legal’s inclusion in Bloomberg Law reinforces the firm’s role as a trusted voice on complex litigation, corporate risk, and insurance-related disputes. This national media placement further strengthens the firm’s visibility among business owners, executives, in-house counsel, and decision-makers seeking practical legal guidance in high-stakes matters.