ULLICO reached a settlement with Robert Georgine, former chairman, president and CEO, to resolve allegations that he breached his fiduciary duties to the company and shareholders, according to a letter to shareholders from current Chairman and CEO Terence M. O'Sullivan. ULLICO sued Mr. Georgine in 2003 following an internal investigation.
The settlement calls for Mr. Georgine to repay about $2.6 million in profits he received from the sale of ULLICO stock. He'll also forfeit roughly $10 million in compensation, among other things. Company officials believe "the total economic value of the settlement is in excess of $17 million," the letter said. The settlement was signed Nov. 10, and took effect immediately.