Pair of Chubb Group Insurers Agree to Settlement

A pair of Chubb Group insurers have agreed to pay $13.5 million to settle with Sunbeam Corp. shareholders who registered a fraud suit against the bankrupt appliance maker, according to the Associated Press. Filed five years ago, the class-action suit agreement brings the total settlement to just over $141 million.

Sunbeam and its officers were accused of inflating stock prices and allegedly providing misleading information to investors about the company’s sales and earnings.

A bankruptcy filing a year ago by the company protected it from any liability. A hearing will be held Aug. 9 to listen to objections to the most recent settlement.

Sunbeam’s accountant Arthur Andersen gave the okay to pay the bulk of $110 million last year before the Enron Corp. scandal became news.

Settlement money also includes $15 million from former CEO and chairman Al Dunlap, $13.5 million from Warren, N.J.-based Chubb’s Executive Risk Insurance Co. and Federal Insurance Co., $2 million from Cincinnati-based Great American Insurance Group, and $250,000 from former executive vice president Russell Kersh.

Both insurers reportedly wrote policies covering Sunbeam officers and directors.

None of the settlements reports of any admissions of wrongdoing.