General American Liquidation Litigation
Analysis Group was retained by the Missouri Department of Insurance to analyze damages and causation issues related to the unexpected failure of General American, a large Missouri life insurance company. At issue was the company’s exposure to, and public disclosures about, corporate bond valuations, interest rates, and rating agency standards. A series of unusual events led to a liquidity crisis as the company had to liquidate sometimes illiquid bonds that had rapidly decreased in value. The Missouri Department of Insurance had to intervene, with a resulting quick sale of the company. The litigation with the auditors over financial statement disclosures was settled after depositions.