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Argus Group - Legal Update Press Release
Hamilton, Bermuda - 27 May, 2009 - Argus Group Holdings Limited ("Argus Group") (AGH.BH) and Argus International Life Bermuda Limited ("Argus International") have reached an agreement in principle to settle a class action pending in the United States relating to investment losses caused by Bernard L. Madoff Investment Securities LLC.
- Argus reaches agreement in principle to settle class action pending in the US
- Argus files claim against Tremont in the Bermuda Supreme Court
- Legal advice sought regarding investments of the Argus Select Funds
- Class action in New York reaches agreement in principle
The terms of the settlement, which are subject to documentation and court approval, incorporate 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. In exchange, the Argus Group and Argus International will obtain broad releases relating to the claims in the litigation and other protections and relief. No financial settlement will be paid to policyholders.
The Argus Group and Argus International continue to deny all allegations of wrongdoing or liability whatsoever with respect to the litigation but have agreed in principle to settle the case to eliminate the burden, expense and uncertainty of litigation as well as the concomitant distraction of resources and efforts from their businesses.
Claim filed in Bermuda against Tremont Group Holdings Inc
Argus Group Holdings Limited, Bermuda Life Insurance Company Limited and Argus International Life Bermuda Limited also announced today that they have filed with the Supreme Court of Bermuda a claim against Tremont Group Holdings Inc and Tremont (Bermuda) Limited. Argus bought Tremont International Insurance Ltd ("TIIL") from the Tremont Group in December 2006, and subsequently changed the company's name to Argus International Life Bermuda Limited. Argus is pursuing a number of claims, amongst them a claim for damages for breach of warranties in the purchase agreement due to the overstatement by Tremont of the assets of TIIL.
In addition, Argus has successfully petitioned the Cayman Grand Court to appoint liquidators over the Tremont managed funds, Rye Select Broad Market Insurance Portfolio LDC and Rye Select Broad Market XL Portfolio Limited. These funds which supported certain policies issued by TIIL had invested with Bernard L. Madoff Investment Securities LLC.
Gerald Simons, President & Chief Executive Officer of the Argus Group, says: "Having done what we can to protect the interests of our policyholders by seeking the appointment of independent liquidator, Zolfo Cooper, over the Rye Funds, Argus is now turning its attention to its own case against Tremont, arising out of the purchase of TIIL. It is quite clear that TIIL was not worth what Tremont said it was and that Argus has suffered losses and damage as a result."
Legal advice sought regarding investments of the Argus Select Funds
Some of the Argus Select Funds which support the pension policies of the Argus Group have a small investment in the Pioneer Momentum AllWeather fund, which in turn, had invested in the Bermuda-managed Kingate Global Fund Ltd, a BVI incorporated Madoff feeder fund. Argus is advised that Pioneer is seeking legal advice in both Bermuda and New York to determine its ability to recover losses as a result of the Madoff fraud.
Gerald D. E. Simons
President & Chief Executive Officer
The Argus Group
Hamilton, Bermuda Tel: 441 295-2021 Fax: 441 292-6763
gsimons@argus.bm