Four former Allstate employees were 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 Northbrook-based 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, according to court documents.
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.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
