On July 23, 2008 the Honorable John R. Tunheim of the United States District Court for the District of Minnesota granted final approval of a $77 million settlement 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 a Settlement Class. The deadline for filing a Proof of Claim has passed. The court approved the distribution of the settlement to eligible claimants on December 18, 2009 and checks have been mailed.
St. Paul II is the second of two cases filed against St. Paul Travelers by Labaton Sucharow , 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.
A copy of the Corrected Notice of Pendency of Class Action and the Proof of Claim form can be accessed by clicking on the links to the right.