Echelon Financial Holdings Inc. (EFH) - which operates in Canada through its subsidiary, The Insurance Company of Prince Edward Island - is letting go of its legal baggage, announcing that it has settled outstanding litigation from the sale of its European operations, QIC Holdings A/S and Qudos Insurance A/S, back in March 2017.
Following the sale, the purchaser commenced litigation in Denmark against EFH, alleging that the insurer had “misrepresented the condition of the European operations,” according to a news release. The buyer claimed damages of about $70 million. EFH denied the claim and has since been defending the litigation.
Now, the EFH board has decided that it is in the best interests of the insurer and its shareholders to settle. The company states that the two parties have agreed to a settlement of $7 million.
With the dispute behind them, EFH directors have also declared a special cash dividend, of $5.60 per share, for a total of approximately $67 million.
