Skandia Insurance Company Ltd. is offering to settle a case involving allegations of past market-timing problems at its old American Skandia unit.[@@]
Prudential Financial Inc., Newark, N.J., acquired the Shelton, Conn., annuities operation from Skandia in 2002.
Skandia says the unit was the target of investigations by the U.S. Securities and Exchange Commission and New York Attorney General Eliot Spitzer concerning activites that are said to have taken place before the acquisition.
American Skandia, the party that officially is making the settlement offer, is neither admitting nor denying liability.
The deal is subject to approval by the SEC and the New York attorney general’s office.
Prudential has an indemnity agreement with Skandia, and Skandia will cover the cost of the $95 million in fines that will be paid out to resolve the case, Skandia says.
CORRECTION: The party that has offered the settlement was identified incorrectly in the original version of the article. The party offering the settlement is a unit of Skandia.