Santa Fe, NM: (Jan-04-08) The state of New Mexico brought a punitive class action suit against St. Paul Travelers Companies, alleging that the company engaged in securities fraud. The state and Attorney General Gary King's office claimed that St. Paul gave out false and misleading financial statements that were artificially inflated. Due to that, King said New Mexico and its retirement systems lost an estimated $8 million.
As part of a settlement reached, sources stated that the company had agreed to pay $77 million to resolve allegations. Sources claimed that New Mexico's Educational Retirement Board, its beneficiaries and thousands of investors who are part of the punitive class stand to benefit from a lawsuit settlement between the state and an insurance company. [
