A pair of Chubb Group insurers have agreed to pay $13.5 million to settle with Sunbeam Corp. shareholders who registered a fraud suit against the bankrupt appliance maker, according to the Associated Press. Filed five years ago, the class-action suit agreement brings the total settlement to just over $141 million.
Sunbeam and its officers were accused of inflating stock prices and allegedly providing misleading information to investors about the company’s sales and earnings.
A bankruptcy filing a year ago by the company protected it from any liability. A hearing will be held Aug. 9 to listen to objections to the most recent settlement.
Sunbeam’s accountant Arthur Andersen gave the okay to pay the bulk of $110 million last year before the Enron Corp. scandal became news.
Settlement money also includes $15 million from former CEO and chairman Al Dunlap, $13.5 million from Warren, N.J.-based Chubb’s Executive Risk Insurance Co. and Federal Insurance Co., $2 million from Cincinnati-based Great American Insurance Group, and $250,000 from former executive vice president Russell Kersh.
Both insurers reportedly wrote policies covering Sunbeam officers and directors.
None of the settlements reports of any admissions of wrongdoing.
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