February 11, 2004

Lucent Sues Fiduciary Insurance Carriers

Reuters reports that Lucent Technologies, Inc. (NYSE: LU) is suing its fiduciary insurance carriers in the wake of its recent $600 million settlement of the securities litigation against the company, including a consolidated securities class action in the D. of N.J., and related ERISA, bondholder, derivative, and other state securities cases. (The settlement included $517 million for the securities class action, making it the second largest settlement of a securities class action in U.S. history.)

According to Lucent's most recent Form 10-Q, it is continuing "to pursue partial recovery of the settlement amount from our fiduciary insurance carriers under certain insurance policies that provide coverage up to $70 million. We have filed a lawsuit against them to recover these amounts. The charge for the settlement will be revised in future quarters if we are able to recover a portion of the settlement from our fiduciary insurance carriers . . . ." The Reuters article states that Lucent has declined to name the insurance carriers that have been sued or where the suit was filed.

Posted by Lyle Roberts at February 11, 2004 11:18 PM | TrackBack
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