According to the Indianapolis Star, the settlement is valued at $10 million and is intended for about 8,000 current and former employees who invested retirement assets in company stock between April 1999 and September 2003. The insurer released the proposed settlement – which still must be put to paper and approved by a federal district court – in its annual report.
The lawsuit was filed against the company after it descended into bankruptcy reorganization in December 2002, accusing Conseco and some executives of failing to disclose key facts regarding the state of the company to employees. Among the former Conseco officials sued were Stephen Hilbert, Gary Wendt, William Shea, Rollin Dick and Charles Chokel, according to the Star.
Conseco said that it expects its reinsurer – RLI Insurance Co. – to cover the cost. However, RLI claims it has no liability in the matter and has filed suit in federal court to avoid paying any monetary damages caused by the stock’s plummet.