Sept 26 (Reuters) - AFC Enterprises Inc AFCE.O said a federal court ruled in its favor and awarded $20 million in damages in a lawsuit against its former insurance carrier that provided liability coverage for its directors and officers.
The franchisor and operator of Popeyes Chicken & Biscuits said it was also awarded $4 million in pre-judgment interest and expects to receive net proceeds of $9 million to $10 million.
The lawsuit against Executive Risk Indemnity Inc involved the carrier’s attempt to withdraw the directors’ and officers’ liability policy for the 2003 policy year in which AFC announced a restatement of its results, AFC said in a statement. (Reporting by Savitha Kalyanaraman in Bangalore)
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