man-user-icon Client Login Portal
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    Labaton Sucharow
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Contact Us
    • Knowledge Network
    • Client Login
    • Search
    • addthis
    • link : Client Login
    • knowledge network
    Labaton Sucharow
    • Ongoing Cases
    • Settled | Resolved Cases
    • Featured Cases
      • Securities
      • Antitrust
      • Derivative
      • Mergers & Acquisitions
      • REITs and Limited Partnerships

    In re Vesta Insurance Group, Inc. Securities Litigation

    Settled: December 10, 2008

    This securities class action resulted in a combined settlement of $78 million.

    This securities class action was commenced in June 1998 against three groups of defendants: (1) Vesta Insurance Group, Inc. (Vesta) and certain of its officers and directors; (2) KPMG Peat Marwick, LLP (KPMG), Vesta's outside auditor; and (3) Torchmark Corporation (Torchmark), the former parent company of Vesta.

    The plaintiffs alleged that from the time it became a public company in 1993 until mid-1998, Vesta issued false financial statements to the public. In August 1998, Vesta restated its financials by approximately $65 million due to accounting irregularities and errors.

    Following extensive discovery, plaintiffs settled with Vesta in 2001 for $61 million and with KPMG in 2002 for $17 million. Those settlement funds were distributed to the class members in 2003.

    Torchmark was the remaining defendant. Plaintiffs alleged that Torchmark is liable under the securities law as a "control" person of Vesta.

    On July 3, 2008, the court, in response to a motion filed by Torchmark, ruled that members of the class who purchased or acquired Vesta stock during the period from June 2, 1998 through June 28, 1998, inclusive, should no longer be members of the class. A copy of the court's Memorandum Opinion and Order, which was entered on July 22, 2008, can be obtained by clicking on the link to the right.

    The trial against Torchmark was scheduled to begin on September 8, 2008 in Birmingham, Alabama. However, on the eve of trial, the parties reached an agreement to settle the case for $1,950,000. A copy of the Stipulation of Settlement, dated September 15, 2008, can be obtained by clicking on the link to the right.

    The court approved the settlement on December 10, 2008. Claim forms were due on December 1, 2008.

    Something Powerful

    Tell The Reader More

    The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

    Remember:

    • Bullets are great
    • For spelling out benefits and
    • Turning visitors into leads.
    case_study_callout_vesta_2

    Case Materials

    Memorandum Opinion

    Stipulation of Settlement

    Order Preliminarily Approving Settlement and Providing for Notice

    Notice of Partial Settlement of Class Action

    Proof of Claim and Release

    Useful Links

    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Center

    Our Locations

    footer-list-map_icon New York
    140 Broadway
    New York, NY 10005
    212-907-0700

    footer-list-map_icon Delaware
    300 Delaware Avenue, Suite 1340
    Wilmington, DE 19801
    302-573-2540

    Useful Links

    footer-list-map_icon Washington, D.C.
    1050 Connecticut Avenue, NW, Suite 500
    Washington, D.C. 20036
    202-772-1880

    Stay Connected

    • Facebook
    • Twitter
    • LinkedIn
    Labaton Sucharow
    • Attorney Advertising Disclaimer
    • Privacy Policy
    • labaton.com
    • Labaton Sucharow All Rights Reserved 2019

    Attorney Advertising Disclaimer

    The materials appearing on this website are provided for informational purposes only and do not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This site is not intended to create an attorney-client relationship. The hiring of a lawyer is an important decision that should not be based solely upon any single source of information, including advertising on this website. You may ask us to send you further information about us, and we urge you to review other sources of information about us.