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Case Status:    SETTLED
On or around 12/23/2009 (Date of order of final judgment)

Filing Date: October 15, 2004

The original complaint charges Hartford Financial and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hartford Financial is a diversified insurance and financial services company. Through its subsidiaries, the Company provides investment products and life and property and casualty insurance to both individual and business customers in the United States and internationally.

The complaint alleges that during the Class Period defendants disseminated materially false and misleading financial statements. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) that the Company was paying illegal and concealed "contingent commissions" pursuant to illegal "contingent commission agreements;" (b) that by concealing these "contingent commissions" and such "contingent commission agreements" the defendants violated applicable principles of fiduciary law, subjecting the Company to enormous fines and penalties totaling potentially tens, if not hundreds, of millions of dollars; and (c) that as a result, the Company's prior reported revenue and income was grossly overstated.

The complaint further alleges that on October 14, 2004, New York Attorney General Elliot Spitzer announced that he had charged several of the nation's largest insurance companies and the largest broker with bid rigging and pay-offs that he claimed violated fraud and competition laws. On these revelations, the Company's shares fell to $56 per share, a drop of 9%.

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, two securities class actions, now consolidated, have been filed in the United States District Court for the District of Connecticut alleging claims against the Company and certain of its executive officers under Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5. The consolidated amended complaint alleges on behalf of a putative class of shareholders that the Company and the four named individual defendants, as control persons of the Company, failed to disclose to the investing public that The Hartford’s business and growth was predicated on the unlawful activity alleged in the NYAG Complaint. The class period alleged is August 6, 2003 through October 13, 2004, the day before the NYAG Complaint was filed. The complaint seeks damages and attorneys’ fees. Defendants filed a motion to dismiss in June 2005, and, on July 13, 2006, the district court granted the motion. The plaintiffs have noticed an appeal of the dismissal.

According to an article dated November 17, 2008, Hartford Financial Services Group Inc., the insurer that had a $2.63 billion third-quarter loss, must defend a lawsuit claiming it misled investors about its finances, a federal appeals court ruled today. The 2nd U.S. Circuit Court of Appeals reinstated a suit claiming Hartford and its top officers misled investors by not disclosing that the insurer paid kickbacks to brokers who provided business.

On February 2, 2009, Judge Christopher F. Droney ordered that the Clerk reopen the case in light of the mandate of the Second Circuit. On August 28, 2009, the plaintiff filed a Stipulation of Settlement. The proposed settlement is in the amount of $3,850,000 in cash. On September 17, 2009, the lead plaintiff filed a motion for preliminary approval of the settlement. On September 28, 2009, Judge Droney approved the motion. A Final Approval Hearing was scheduled for December 17, 2009. On December 23, 2009, Judge Droney approved the settlement, approved the plan of allocation and awarded attorneys’ fees and expenses. The Final Judgment and Order of Dismissal With Prejudice was entered the same day.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Prop. & Casualty)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HIG
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Connecticut
DOCKET #: 04-CV-1740
JUDGE: Hon. Christopher F. Droney
DATE FILED: 10/15/2004
CLASS PERIOD START: 11/05/2003
CLASS PERIOD END: 10/13/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (D.C.)
    1100 Connecticut Avenue, N.W., Suite 730, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (D.C.), DC 20036
    202.822.6762 202.828.8528 · info@lerachlaw.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (NY)
    200 Broadhollow Road, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (NY), NY 11747
    631-367-7100 631-367-1173 ·
  3. Scott & Scott LLP (New York-former)
    29th West 57th Street, 14th Floor, Scott & Scott LLP (New York-former), NY 10019
    212.223.6444 212.223.6334 · scottlaw@scott-scott.com
  4. Scott & Scott LLP (San Diego)
    600 B Street, Suite 1500, Scott & Scott LLP (San Diego), CA 92101
    619.233.4565 619.233.4565 · scottlaw@scott-scott.com
No Document Title Filing Date
COURT: D. Connecticut
DOCKET #: 04-CV-1740
JUDGE: Hon. Christopher F. Droney
DATE FILED: 04/12/2005
CLASS PERIOD START: 08/06/2003
CLASS PERIOD END: 10/13/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (NY)
    200 Broadhollow Road, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (NY), NY 11747
    631-367-7100 631-367-1173 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  3. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
No Document Title Filing Date
No Document Title Filing Date