Constantin reaches deal for insurance payout
Payout linked to violations by company's former managementBERLIN -- German rights group Constantin Medien has reached a deal securing a second insurance payout linked to violations committed by the company's old management, back when Constantin Media was called EM.TV.
Insurer ACE Europe Group Limited has agreed to pay Constantin €27.5 million ($41 million), part of a so-called Directors and Officers Liability policy insuring against management malfeasance. U.S. insurance group Chubb agreed to a similar, €30 million ($44 million) payout last week.
Constantin said the two settlements will compensate all outstanding damage claims against the management of EM.TV, including brothers Thomas and Florian Haffa. The Haffa, then CEO and CFO of EM.TV, took out D&O policies to protect themselves from shareholder suits.
EM.TV shares collapsed after it was revealed the Haffas had misrepresented profit statements and lied to shareholders. The company's new management has been fighting in court for compensation for the past six years.