Kickback Case Reinstated Against The Hartford

By Daniel Hays
NU Online News Service

A federal appeals court yesterday reinstated a 2004 securities class-action against The Hartford that alleged stockholders were misled because the company did not disclose it paid insurance brokers kickbacks in the form of contingency fees to win business. The decision by the 2nd U.S. Circuit Court of Appeals in New York throws out a ruling by U.S. District Court Judge Christopher F. Droney in Hartford, Conn., and remands the case for trial. Judge Droney dismissed the case in 2006, finding that the statute of limitations had run out for the plaintiffs to file an action.

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