Argus Group Holdings Ltd. announced yesterday that it has agreed to settle a class action lawsuit pending in the SDNY relating to losses stemming from the Bernard Madoff fraud. Plaintiffs in the case are international life insurance customers who sued Argus, Argus International Life Bermuda Ltd., and ten other funds, money managers and companies, when the value of their policies plummeted.
The Royal Gazette reports that the settlement calls for no money paid to policyholders, but rather “a broad package of relief, including loans to policyholders, the assignment of certain Argus International claims to a litigation trust, and cooperation by Argus International in connection with litigation of the assigned claims,” the company stated. “In exchange, the Argus Group and Argus International will obtain broad releases relating to the claims in the litigation and other protections and relief.”
Plaintiffs reportedly alleged that Argus and the other defendants in the suit failed to see numerous “red flags” concerning Madoff’s company.