Summary
Ameriprise Financial, Inc. (AMP) has announced settlement agreements through its subsidiary, Securities America, Inc. (SAI), concerning the sale of private placements issued by Medical Capital and Provident Royalties. These entities are currently in receivership. The total settlement amount is $150 million, with $40 million already recognized in the fourth quarter of 2010. The remaining $110 million, along with other provisions, is expected to result in a pre-tax expense of $118 million for the first quarter of 2011. This settlement aims to resolve pending arbitration, litigation, and certain class action claims against the Company.
Key Highlights
- 1Securities America, Inc. (SAI), a subsidiary of Ameriprise, entered into settlement agreements related to the sale of private placements from Medical Capital and Provident Royalties.
- 2Medical Capital and Provident Royalties are currently in receivership.
- 3The total settlement value is $150 million.
- 4$40 million of the settlement was already recognized in Q4 2010.
- 5An additional pre-tax expense of $118 million is anticipated for Q1 2011, encompassing the remaining settlement payment and other provisions.
- 6These settlements are intended to resolve pending arbitration, litigation, and specific class action claims against Ameriprise.
- 7SAI's involvement in the settlements does not constitute an admission of wrongdoing; the SEC has charged Medical Capital and Provident Royalties with fraud.