Property Casualty 360 reported that four former Allstate employees have been awarded more than $27 million by a federal jury in a defamation lawsuit against the company, according to a recent report in the Chicago Tribune.
The employees, all part of a now-defunct equity division at Allstate, were fired in December 2009 for allegedly timing trades to boost their own incentive bonuses at the expense of the company’s investment portfolios.
Allstate blamed “some employees” in a February 2010 Securities and Exchange Commission filing for timing trades, which the company said may have cost the portfolios more than $200 million over six years, while netting $1.2 million in bonuses for equity division employees.
Daniel Rivera, Stephen Kensinger, Deborah Joy Meacock and Rebecca Scheuneman filed the defamation lawsuit in March 2010, claiming they had been falsely accused of wrongdoing by the SEC filing.
The defamation lawsuit took nearly six years to get to trial. The jury verdict, announced June 21st, awarded the employees a total of $27.1 million.
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