Bermuda based ACE Ltd. is unhappy about several aspects of its acquisition of CIGNA’s property/casualty business , and has filed suit in Federal Court in New York to recover a total of $218 million in damages.
At issue, according to ACE, are a tax payment of $48 million under a sharing agreement that CIGNA has refused to pay over, “and that the financial statements, which CIGNA provided, failed to fairly represent the financial condition of the acquired companies.”
ACE paid $3.45 billion for CIGNA’s p/c business that closed in July 1999. In a statement concerning the suit ACE said that it would not have any financial impact on this year’s results.
CIGNA has as yet made no comment on the allegations.
Topics Lawsuits Property Casualty
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