DaimlerChrysler and insurers agree on settlement payout

DaimlerChrysler has finally reached an agreement with its insurers that finally determines who is paying what in a settlement of a lawsuit filed by the automaker's investors over the nature of the merger that created company back in 1998. Chrysler stock holders originally argued that the Daimler-Benz deceived them when describing the joining of both companies as a "merger of equals" and sought an outrageous $22 billion in damages. The lawsuit quotes then DaimlerChrysler head honcho Jürgen Schrempp (shown at right) as saying in a 2000 interview that calling the deal a merger rather than a takovoer was for "psychological reasons" only. That slip of the tonght cost Schrempp and the company as a whole, which was counting on Schrempp's liability insurance to cover most or all of the $300 million settlement that was reached. Many of the company's insurer's, however, refused to pay.

Originally the insurers coughed up $25 million, forcing DCX to pay the rest. Of the remaining $228 million left to be payed on the settlement, the Associated Press is now reporting that insurers insurers have agreed to pay for over $223 million.

[Source: Associated Press via International Herald Tribune]

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