CRM Holdings says NY state plans legal action
Oct 3 (Reuters) - CRM Holdings Ltd (CRMH.O) said it received a letter from the New York State Workers' Compensation Board saying it planned to start legal proceedings against the company relating to CRM's actions as administrator and broker for eight self-insured groups.
The provider of workers' compensation insurance products said it had filed an action in response to the letter in the New York State Supreme Court against the board and the groups, according to a filing with the U.S. Securities and Exchange Commission.
CRM Holdings said it seeks judgment from the court that it did not breach its duties to the groups or engage in any self-dealing or deceptive practices, and that the board lacks the legal authority to pursue claims on behalf of the groups.
CRM said it is not seeking any monetary damage but if the matter is decided adversely or settled by the company it could hurt the company's financial condition.
The self-insured groups include the Healthcare Industry Trust of New York, Wholesale and Retail Workers' Compensation Trust of New York and the New York State Association of Cemeteries Trust. (Reporting by Shivani Singh in Bangalore; Editing by Mike Miller)
