Constantin to get $44 mil insurance payout
From U.S. insurance group Chubb for Haffa's mistakesCOLOGNE, Germany – German sports broadcaster and rights group Constantin Medien will receive a €30 million ($44 million) from U.S. insurance group Chubb, a payout linked to violations committed by the Constantin's old management nearly a decade ago, when the company was called EM.TV.
Chubb has settled with Constantin after six years fighting the case in court.
The payout comes from so-called Directors and Officers Liability (D&O) policies. EM.TV managers, including brothers Thomas and Florian Haffa, former company CEO and CFO respectively, took out D&O policies with Chubb to protect themselves from shareholder suits.
Those suits rained down on EM.TV's board of directors after revelations management had published grossly false revenue statements. The company's stock tanked and thousands of small shareholders lost their shirts.
Constantin is now under new management.
Observers expect a tidal wave of similar settlements in the wake of the financial crisis as European shareholders take companies to court over managerial mess-ups.