October 11, 2012
Nationwide Announces Settlement on Harleysville Policyholder Class Action Litigation
Columbus, Ohio - Nationwide has agreed to settle litigation related to the merger with Harleysville Insurance. The $26 million settlement relates to In re Harleysville Mutual, a consolidated class action and derivative suit related to the merger of Nationwide Mutual and Harleysville Mutual that has been brought on behalf of former Harleysville Mutual policyholders. The suit and settlement were filed in the Court of Common Pleas of Philadelphia, First Judicial District of Pennsylvania, Civil Trial Division under the Honorable Patricia A. McInerney.
Given the potential cost and burden of continued litigation, Nationwide believes that settling this lawsuit is in the best interest of all Nationwide and Harleysville stakeholders. The Company is pleased to resolve this matter and put the Harleysville class action and derivative litigation behind it.
The settlement is not an admission of wrongdoing or liability by Nationwide or Harleysville. The court has not ruled on the merits of the suit, and is not expected to do so in the course of the settlement-related proceedings. The settlement will not be final until it is approved by the court and any appeals from the court’s ruling are resolved.
As part of the settlement process, the parties have requested that the court certify a class for the purposes of settlement only. Before the court can approve the settlement, class members must be given notice of the terms of the settlement and their rights with respect to it, and the court must hold a hearing to determine the fairness of the settlement.
The timeline for when class members will receive written notice of the settlement, their deadline for objecting to or opting out of the settlement, and the date of the fairness hearing on the settlement will be determined by the court.
Nationwide, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by A.M. Best. The company provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions and long-term savings plans. For more information, visit www.nationwide.com.