Tousa Insurers To Pay $67M To End Suit Against Directors

Law360, Chicago (June 10, 2013, 5:45 PM EDT) -- Bankrupt homebuilder Tousa Inc. on Thursday asked a Florida bankruptcy judge to approve a settlement whereby its insurers will pay $67 million to end a lawsuit accusing Tousa’s top brass of disregarding their duty to the company and its creditors.

The deal is part of a broader “grand bargain” at the heart of the company’s Chapter 11 liquidation plan, according to a motion filed with the court, resolving disputes among Tousa and its lenders over the company’s failed 2005 joint venture to acquire fellow Florida homebuilder...
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