Wal-Mart Pays $2M To Settle Suit Over COLI Policies

Law360, New York (August 15, 2011, 9:30 PM EDT) -- Wal-Mart Stores Inc. will pay $2.02 million to settle a class action claiming the retail giant improperly took out company-owned life insurance policies on employees and collected benefits after they died, according to documents filed in Florida federal court Thursday.

The settlement affects a class of estates representing 223 Wal-Mart employees in Florida who had company-owned life insurance, or COLI, policies between 1993 and 1995, and died prior to Jan. 31, 2000, when Wal-Mart surrendered all of its COLI policies.

Wal-Mart stopped purchasing COLI policies in...
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