Travelers Cos. will pay another $77 million to investors to settle a class-action securities fraud lawsuit that dates back to 2004, an official with the New Mexico attorney general’s office said today.
The suit, brought against St. Paul-based Travelers by the State of New Mexico, alleges that officers and directors of The St. Paul Cos. negotiated the 2004 merger with Travelers Property and Casualty Corp. to cover up financial problems – namely inadequate reserves to cover insurance claims.
In November 2005, a class-action settlement of $67.5 million was reached. The $77 million settlement stems from the same issues.
A spokeswoman for Travelers would not comment on the settlement.
In a filing with the Securities and Exchange Commission on December 31, Travelers disclosed that it had reached a settlement in the class-action suit, but the company did not provide details. In the filing, which also announced a separate $6 million settlement with the attorneys general of nine different states and the District of Columbia, Travelers said the settlements would not have a significant impact on operations.
Nicole Garrison-Sprenger can be reached at ngarrisonsprenger@pioneerpress.com or 651-228-5580.
