Summary
This 8-K filing by ACE Limited (formerly Chubb Ltd) on September 22, 2005, reports the resolution of a lawsuit filed by the Connecticut Attorney General. The company agreed to pay $40,000 to settle the claims, which stemmed from certain underwriting practices related to an $80 million portfolio of Connecticut workers' compensation claims that ACE administers. ACE had previously moved to dismiss the case, asserting it was without merit, but opted to settle to avoid further litigation costs. The settlement signifies the end of this legal dispute, with ACE Limited confirming it will continue to administer its contract with the state and its ongoing business of handling workers' compensation claims for Connecticut. Investors can view this as a positive development, as it removes a legal overhang and associated potential costs, allowing the company to focus on its core operations.
Key Highlights
- 1ACE Limited resolved a lawsuit with the Connecticut Attorney General.
- 2The company agreed to pay $40,000 to settle the claims.
- 3The lawsuit concerned underwriting practices related to an $80 million portfolio of Connecticut workers' compensation claims.
- 4ACE had previously argued the case was without merit and filed a motion to dismiss.
- 5The settlement was reached to avoid the costs of further litigation.
- 6ACE Limited will continue its contract administration and claims handling business for Connecticut.