AMERIPRISE FINANCIAL INC 8-K/A Report, Corporate Update (May 17, 2006)

Summary

This amended 8-K filing from Ameriprise Financial, Inc. (AMP) addresses an arbitration proceeding decision that occurred on May 15, 2006. A NASD panel ruled against Securities America, Inc., a wholly owned subsidiary of Ameriprise, awarding approximately $19.6 million to plaintiffs in a case captioned "Wayland Adams et al vs. David McFadden and Securities America, Inc." Ameriprise Financial stated that Securities America disagrees with the arbitration panel's decision and plans to file a motion to vacate the award. Despite the significant award amount, the company believes that the financial impact, net of any applicable reserves, would not be material to Ameriprise Financial's overall earnings.

Key Highlights

• 1Ameriprise Financial's subsidiary, Securities America, Inc., was ruled against in a NASD arbitration proceeding.
• 2The arbitration award granted to the plaintiffs amounts to approximately $19.6 million.
• 3Securities America, Inc. disagrees with the panel's decision and intends to seek a motion to vacate the award.
• 4Ameriprise Financial anticipates that the financial impact of this award, after accounting for reserves, will not be material to its earnings.
• 5This filing is an amendment (8-K/A) to a previous 8-K filing, correcting typographical errors.
• 6The original arbitration decision date was May 15, 2006, with the amended filing dated May 17, 2006.

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