Ahold and European Insurer Settle on Liability Coverage

ZAANDAM, The Netherlands - Ahold, the beleaguered Dutch multinational retailer, announced today that it has settled a dispute with insurer AIG Europe over directors' and officers' liability insurance coverage, reported the Baltimore Business Journal.

The dispute followed the $850 million accounting scandal at Ahold's Columbia, MD-based U.S. Foodservice unit last year.

In April, AIG asked a Dutch court to declare that AIG's directors' and officers' liability insurance policy excluded coverage for claims such as those arising from the incident. U.S. Foodservice filed suit in Baltimore's U.S. District Court in May, hoping to get AIG to pay the claims.

Both AIG's lawsuit and U.S. Foodservice's lawsuit will be terminated, Ahold said in a news release. No other terms of the settlement were disclosed.


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