On July 23, 2008, the Honorable John R. Tunheim of the United States District Court for the District of Minnesota granted final approval of the $77 million Settlement proposed by the parties in the securities fraud class action, In re St. Paul Travelers Securities Litigation II ("St. Paul II"), Civ. No. 04-4697 (JRT/FLN) (D. Minn.), and certified the Settlement Class. If you purchased securities of the St. Paul Companies, Inc. or the St. Paul Travelers Companies, Inc. between Jan. 27, 2000 and Nov. 16, 2004; or exchanged shares of Travelers Property Casualty Corp. Class A and/or B common stock for shares of St. Paul Travelers in the merger between St. Paul and Travelers Property Casualty, please submit a proof of claim and supporting documents by August 27, 2008. A copy of the Notice and Proof of Claim can be accessed by clicking on the links to the left.

St. Paul II is the second of two cases filed against St. Paul Travelers by Labaton Sucharow LLP, as Lead Counsel, on behalf of the Educational Retirement Board of New Mexico. The first action, known as St. Paul Travelers Sec. Litig. I, was a securities fraud class action which arose from the 2003 merger of the St. Paul Companies and Travelers. That action was settled at the end of 2005, for $67.5 million, and provided hundreds of thousands of shareholders with recompense for the damage they suffered.

St. Paul II arose from the industry-wide insurance scandal involving American International Group, Marsh McClennan, the St. Paul Companies and numerous other insurance providers and brokers. Investigations involved charges that the insurance industry had formed a cartel, through bid rigging, kick backs and the payment of illegal contingent commissions, resulting in higher premiums to customers, and illegally earned revenues for the cartel’s participants. St. Paul’s alleged participation in this cartel, and its misuse of finite insurance, has lead to approximately 22 investigations, including a formal SEC investigation, and an in-depth investigation by the Office of the Attorney General for the State of New York.