Wed 06/20/2007

ACRO CONSTRUCTORS v. STATE COMPENSATION INSURANCE FUND

On May 22, 2007, Pearson, Simon, Warshaw & Penny, LLP filed a class action on behalf of a Los Angeles construction company, ACRO Constructors, against the largest workers' compensation insurance carrier in the State of California. The suit seeks restitution of premiums, dividends and credit for the funds that SCIF directors and managers diverted to their personal gain or permitted to be diverted by self-serving inattention to the interests of their insureds, as alleged in the complaint.

SCIF is a not for profit insurer charged with the responsibility of writing workers' compensation insurance for California's employers and managing those funds to minimize employer premium while meeting the employers' obligations to industrially injured workers. The lawsuit seeks the recovery and appropriate allocation of millions of dollars allegedly paid to the administrators of so-called "Safety Groups" that did nothing to benefit the insured employers or their injured employee.

If you have information relevant to this litigation, we encourage you to contact us, toll free (877) 391-8300 or send an e-mail