US - Watson Wyatt will pay $110m to settle a lawsuit with the Michigan's iron workers pension fund.
The consultant said last week it would pay the trustees of the Iron Workers Local No. 25 pension fund to settle a lawsuit over actuarial services it provided to the fund during the 1990’s.
However in a notice posted on the US Securities and Exchange Commission’s website, Watson Wyatt said that despite settling the case it did not acknowledge any wrongdoing.
The payment of $110m made to the Fund is covered by the company’s professional liability insurance and it claimed the settlement would have no impact on its financial statements.
The trustees filed the lawsuit in the District Court of Michigan and claimed that Watson Wyatt had breached its contract and of maladministration.
In a statement Watson Wyatt said: "Watson Wyatt entered into a settlement with the Trustees of the Iron Workers, Local No. 25 Pension Fund of a previously disclosed lawsuit related to actuarial services provided to the Fund during the 1990s. While we do not acknowledge any wrongdoing, we agreed to resolve the claim given the unpredictability of litigation. Under the terms of the settlement, a payment of $110 million will be made to the Fund, the total amount of which is covered by our professional liability insurance. The settlement will have no impact on our financial statements."
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