BCBSD, Inc. was a non-profit health insurance company and Crosse was a plan participant. Crosse sued the insurance company for not distributing claiming that health insurer breached its fiduciary duties by accumulating a surplus of over $50 million. Crosse claimed the surplus should have been passed on to plan participants. Crosse also claimed that the directors of the company should be held individually liable. The lawsuit raised two issues. First, did the insurance company have a fiduciary duty to the insured. Second, was it proper to "pierce the corporate veil" based on the fact that the company failed to act as a non-profit company in accumulating its profits. How did the court resolve these issues?
See Crosse v. BCBSD, Inc. 836 A.2d 492 (Del.Supr. 2003).