Andersen Pays Off Baptist Foundation Fine
Investors in the Baptist Foundation of America are one step closer to recovering million of dollars they lost as Andersen paid off the remaining $205 million fine that it owed.
Last week, Andersen's insurance company paid off the remainder of its $217 million fine, thereby closing this chapter on the legal battles Andersen has faced from the Baptist Foundation.
The lawsuit, brought against Andersen in the summer of 2000, was full of legal twists and turns. Earlier this year Andersen settled the case by promising to pay over $200 million to the Foundation for its alleged role in the bankruptcy of the Foundation, which caused over $500 million in losses to mostly elderly investors.
In April, after reaching a settlement figure, Andersen backed out of the agreement claiming that its insurance company, an offshore captive insurance company owned by Andersen partners, was itself insolvent, and therefore unable to pay what was owed.
The case went to trial later in April and within a week an agreement was reached whereby Andersen would pay a total of $217 million for its share of the responsibility in settling the case.
After recapitalizing its captive insurance company on May 30, Andersen was able to complete the payoff.