Aurora National Settles Suit Over Executive Life

From Bloomberg News

Valencia-based Aurora National Life Assurance Co. agreed to pay $11.8 million to the losing bidder in the 1991 auction for the assets of Executive Life Insurance Co. to settle a civil lawsuit.

The bidder, Sierra National Insurance Holdings Inc., will continue a suit against Credit Lyonnais and other parties over the French bank’s purchase of Executive Life’s assets, said David Balabanian, a lawyer for Sierra.

Sierra’s suit is one of several that claim Lyonnais fraudulently gained control of Executive Life by using other firms, including Aurora, as fronts to avoid laws that prevented foreign banks from owning insurers. In January, the bank entered a guilty plea as part of a $770-million settlement of charges related to the deal.