Insurer Settles Suit Over $1.6B Claim Reserve Increase

Law360, New York (November 23, 2005, 12:00 AM EST) -- Insurance company St. Paul Travelers Cos. has settled the numerous shareholder suits filed against the company over a drop in stock price caused by a $1.6 billion increase in claim reserves following the company’s merger last year.

The details of the settlement were not made public, but the company said in a filing with the Securities and Exchange Commission that the amount was not material and that it does not expect it to effect share prices.

The suits date back to the April 2004 merger of...
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