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Compliance September 2, 2003
Conseco Settles Lawsuit Led by Pension Funds
February 21, 2002 (PLANSPONSOR.com) - Conseco Inc
has agreed to pay $120 million to settle a class action
lawsuit led by two firefighters' pension funds in which the
company was accused of reporting false financial
results.
Reported by Fred Schneyer
The class represents customers who bought Conseco stock between April 28, 1999 to April 14, 2000, according to the settlement announcement by The Anchorage Police & Fire Retirement System and the State of Louisiana Firefighters’ Retirement System.
On April 14, 2000, Conseco said it planned to restate its previously published financial statements for the first, second and third quarters of 1999, and that it would revise its previously reported results for the 1999 fourth quarter and fiscal year, the settlement announcement said.
The reported settlement ends a legal battle that had been pending before US District Judge Richard L. Young, of the US District Court for the Southern District of Indiana.
In the settlement, the defendants have admitted no wrongdoing.
The Conseco settlement comes at a time when accounting practices are in the public eye to an unprecedented extent following the accounting scandal surrounding beleaguered energy trader Enron and its auditors Arthur Andersen.