Houston, TX: (Feb-08-08) A class action lawsuit was brought against HCC Insurance Holdings, Inc., over the company's historic stock option granting practices. HCC Insurance Holdings, Inc. is a leading international specialty insurance group with offices across the United States and in Bermuda, Spain, Ireland and the United Kingdom. Sources close to the case stated that the company has agreed to resolve all pending litigation by entering into a settlement.
As part of the agreement reached in the shareholder derivative litigation regarding the stock option matter, the company agreed to pay $10 million into a settlement fund, pending approval by the Court of a plan of distribution. Company spokespersons said that the $10 million will be paid by the company's directors' and officers' liability insurers, and will not have a material effect on HCC's financial results. Once approved, the settlement will resolve all class action litigation pending against the company, as well as its former and current directors and officers. The deal does not include any admission of liability or wrongdoing. [
