Delphi Financial Settles Investor Suit Over Tokio Deal
By JoAnne Norton and Phil Milford-Apr 9, 2012 9:30 AM ET
Delphi Financial Group Inc. (DFG), which sells worker’s compensation and group life insurance, said it agreed to settle a shareholder lawsuit over its $2.7 billion buyout by Tokio Marine Holdings Inc. (8766) for $49 million.
Investors sued in January in Delaware Chancery Court in Wilmington to block the sale, saying the deal’s structure enriched company insiders.
Delphi shareholders “will receive their pro rata portion of a payment equal to $49 million less plaintiffs’ counsel fees and expenses,” subject to approval at a later hearing by Judge Sam Glasscock, Delphi said today in a statement. Court documents on the settlement weren’t immediately available.
Tokio Marine, Japan’s second-largest casualty insurer, agreed in December to pay $44.88 a share for Delphi’s Class A public shares and $52.88 apiece for its Class B shares.
The judge last month refused to block the deal following arguments at a hearing.
The case is In re Delphi Financial Group Shareholder Litigation, CA 7144, Delaware Chancery Court (Wilmington).
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