CRM Holdings, Ltd. Responds to the New York State Workers’ Compensation Board Lawsuit
10 Dicembre 2009 - 7:24PM
Business Wire
CRM Holdings, Ltd. (“CRM” or “the Company”) (Nasdaq: CRMH) today
announced that the New York State Workers’ Compensation Board
(“WCB”) has commenced a lawsuit against CRM on its own behalf and
in its capacity as successor in interest to the workers’
compensation group self-insurance trusts in New York previously
managed by Compensation Risk Managers, LLC.
The WCB’s lawsuit, brought in Supreme Court of the State of New
York, Albany County, alleges that CRM, its subsidiaries and certain
directors and officers breached fiduciary duties owed to the
trusts, breached contracts between Compensation Risk Managers and
the trusts, breached duties of good faith and fair dealing owed to
the trusts, engaged in fraudulent activities in administering the
trusts, engaged in deceptive business practices and advertising,
and were unjustly enriched. The WCB alleges that the WCB and the
trusts have suffered damages in an amount that is not currently
ascertainable, but which is believed to exceed $405 million.
The Company denies each and every one of the WCB's allegations
and believes that Compensation Risk Managers, LLC provided services
to the trusts it managed in compliance with its contractual
obligations to the trusts and in a manner consistent with
applicable law and the rules and regulations of the WCB. According
to the WCB's website, of the 65 self insurance workers compensation
trusts authorized by the WCB and subject to its oversight and
regulation, as of November 2009, 32 were either insolvent, being
terminated or were underfunded, 13 had been voluntarily terminated
and only 20 were operating with no fiscal issues and no regulatory
restriction. Compensation Risk Managers managed 8 of these 65
trusts. The Company believes that an industry-wide problem exists
and that the WCB has unfairly singled the Company out. The Company
intends to defend the WCB litigation vigorously and prove that the
WCB's unsubstantiated allegations are utterly without merit.
The WCB’s lawsuit is related to the New York self-insured group
litigation as more fully described in “Part II - Item 1. Legal
Proceedings” of the Company's Quarterly Report on Form 10-Q for the
period ended September 30, 2009. The Company regards any increased
uncertainty concerning its businesses, and any resulting damage
caused to its reputation, to be unjustified and unfortunate. The
Company and its subsidiaries will continue to provide its customers
with the full range of workers' compensation products and services
they have come to expect and stands behind its products and
people.
About CRM Holdings, Ltd.
CRM Holdings, Ltd. is a provider of workers' compensation
insurance products. Its main business activities include
underwriting primary workers' compensation policies, underwriting
workers' compensation reinsurance and excess insurance policies,
and providing fee-based management and other services to
self-insured entities. The Company provides primary workers'
compensation insurance to employers in California, Arizona,
Florida, Nevada, New Jersey, New York, and other states. The
Company reinsures some of the primary business underwritten and
provides excess workers' compensation coverage for self-insured
organizations. CRM is also a provider of fee-based management
services to self-insured groups in California. Further information
can be found on the Company’s website at
http://www.CRMHoldingsLtd.bm.
CRMH-E
Forward-Looking statements
This press release contains forward-looking statements within
the meaning of federal securities law, including statements
concerning plans, objectives, goals, strategies, projections of
future events or performance and underlying assumptions (many of
which are based, in turn, upon further assumptions). These
statements are based on our current expectations and projections
about future events and are identified by terminology such as
“may,” “will,” “should,” “expect,” “scheduled,” “plan,” “seek,”
“intend,” “anticipate,” “believe,” “estimate,” “aim,” “potential,”
or “continue” or the negative of those terms or other comparable
terminology.
All forward-looking statements involve risks and uncertainties.
Although we believe that our plans, intentions and expectations are
reasonable, we may not achieve our plans, intentions or
expectations. There are or may be important factors that could
cause actual results to differ materially from the forward-looking
statements we make in this document. Such risks and uncertainties
are discussed in the Company’s Form 10-K for the year ended
December 31, 2008, and in other documents filed by the company with
the Securities and Exchange Commission.
These risks and others could cause actual results to differ
materially from those expressed in any forward-looking statements
made. The Company undertakes no obligation to update publicly or
revise any forward-looking statements made.
Grafico Azioni Crm (NASDAQ:CRMH)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Crm (NASDAQ:CRMH)
Storico
Da Giu 2023 a Giu 2024