A federal judge has approved Conseco, Inc.'s (OTCBB: CNCEQ) bankruptcy reorganization plan over the objections of counsel in the securities class action against the company. Conseco is an Indiana-based insurance company that has been dogged by finanical difficulties over the last few years. According to a report in the Indianapolis Star, the plan includes broad legal protections for directors and officers. The plan, and related documents, can be found here.
Quote of note: "[A]t least two parties -- including plaintiffs of a yet-to-be-certified class-action suit against Conseco -- filed similar last-minute objections. They questioned [Judge] Doyle's authority to allow such broad releases as well as whether they actually served Conseco's long-term interest. . . . Doyle countered that federal appeals courts do allow broad legal releases as long as they are consensual to all parties, while Conseco attorneys said the releases will save the company significant costs in time and money that would be spent on legal issues."Posted by Lyle Roberts at September 10, 2003 10:59 AM | TrackBack