Thank you for sharing!

Your article was successfully shared with the contacts you provided.
BANKRUPTCY Airline, pension insurer settle pilots’ plan dispute ATLANTA (AP)-Delta Air Lines Inc. and the Pension Benefit Guaranty Corp. have reached a settlement over some key issues related to the carrier’s request to terminate its pilots’ pension plan. Under the agreement, the government’s pension insurer would get an unsecured claim of $2.2 billion against the Delta. That would put it in line with other unsecured creditors for compensation after Delta emerges from bankruptcy. Delta has already received court approval to terminate the pension plan. The airline said that it had to eliminate its pilots’ pension to be able to emerge successfully from Chapter 11. Termination of the pension plan would mean that Pension Benefit Guaranty would take over the pension and pay the pilots’ benefits up to a maximum limit, in many cases less than what they were expecting under the company plan. CLASS ACTION Wal-Mart pays $5.1M to settle life insurance suit TULSA, OKLA. (AP)-Wal-Mart Stores Inc. has settled a nearly $5.1 million class action brought by the estates of 73 former employees in Oklahoma. The plaintiffs had sued to recover life insurance benefits they said Wal-Mart wrongfully received upon the employees’ deaths. Wal-Mart had taken out life insurance policies on its employees, making itself the beneficiary, and the lawsuit alleged that Wal-Mart had no “insurable interest in the lives of its rank-and-file employees.” CONSUMER PROTECTION Bond lawyers pay $21M over failed Enron deal HARTFORD, CONN. (AP)-The Connecticut Resources Recovery Authority, a regional trash authority, has agreed to a tentative $21 million settlement of a lawsuit against former bond lawyers involved in a failed $220 million deal with Enron. The Connecticut authority could return part of the settlement to 70 member towns that claim they are paying higher fees because of the unsecured loan made to Enron in 2001. The towns are suing to stop the authority from passing on the cost of the deal to consumers. The 2001 transaction would have allowed the authority to sell electricity generated at its Hartford trash-to-energy plant to Enron from 2001 to 2012. The authority advanced $220 million to Enron and was to get a 7% return through monthly payments of more than $2.2 million. Eight payments were made, but the rest of the money was lost when Enron went bankrupt in December 2001. Connecticut Attorney General Richard Blumenthal sued dozens of individuals and entities who were involved in the Enron deal. To settle the suit, New York-based public-finance law firm Hawkins Delafield & Wood will pay the $21 million. PATENTS Firm must pay $7.5M for infringing hormone drug BRISBANE, CALIF. (AP)-Biopharmaceutical company Tercica Inc. has said that a jury has found that rival Insmed Inc. infringed on patents used in its Increlex drug, and ordered damages of $7.5 million plus 15% of royalties. Tercica had sued Insmed over patents dealing with the drug called Increlex. Insmed makes Iplex. The drugs treat children who lack a growth hormone called IGF-1. Genentech Inc., also named in the lawsuit, sold exclusive rights for Increlex to Tercica. Tercica said the jury verdict also orders 15% royalties for Iplex sales of up to $100 million and 20% royalties for past Iplex sales greater than $100 million. REGULATORY ACTION Insurer pays $122M to settle price-fixing claims HARRISBURG, PA. (AP)-Zurich American Insurance Co. will pay $122 million to resolve claims of bid-rigging and price-fixing in the commercial insurance market under a nationwide settlement negotiated by Pennsylvania and 10 other states, Pennsylvania Attorney General Tom Corbett has announced. The states discovered that Zurich American, a unit of Swiss insurance giant Zurich Financial Services, had failed to disclose that it paid “contingent commissions” to insurance brokers and conspired with brokers in a scheme to overcharge commercial policyholders. Preliminary settlement terms announced in March called for policyholders to receive $152 million in refunds, but the company was permitted to credit $30 million toward that amount in other nationwide settlements it is paying under a separate agreement. SEX ABUSE Los Angeles Archdiocese settles 45 cases for $60M LOS ANGELES (AP)-The Roman Catholic Archdiocese of Los Angeles has said it will pay $60 million to settle 45 sex abuse lawsuits. The cases were among more than 500 abuse claims pending against the archdiocese. A lawyer for the plaintiffs said that an agreement had not been signed but that the parties were close. The settlement outlined by the archdiocese involves 22 priests and allegations from two periods when the archdiocese had limited or no insurance against abuse claims-prior to the mid-1950s and after 1987.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.