Kemper's subsidiary receives favourable ruling in arbitration and wins USD84.3m plus interest.
M2 EQUITYBITES-October 12, 2017-Kemper's subsidiary receives favourable ruling in arbitration and wins USD84.3m plus interest
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Kemper Corporation's (NYSE:KMPR) subsidiary Kemper Corporate Services Inc, received a favourable ruling in a confidential arbitration proceeding against a software vendor and has been awarded USD84.3m plus interest, the company revealed on Thursday.
The subsidiary filed a demand for arbitration with the American Arbitration Association (AAA) in October 2015, claiming that the vendor had breached the terms of a master software license and services agreement and related agreements (collectively, the agreements) by failing, among other things, to timely produce and deliver certain software to Kemper. The vendor denied its claims and filed a counterclaim.
In addition, the company stated that the arbitrator's decision on the vendor's liability for breach and the damages for that breach is final, subject to challenge by the vendor on any grounds available under applicable law. The company will pursue confirmation and enforcement of the Partial Final Award, in a court of competent jurisdiction and intends likewise to do so for any final award by the arbitrator.
Further, the Partial Final Award is treated as a gain contingency for accounting purposes and accordingly will not be recognised in the company's third quarter 2017 consolidated financial statements, it said as well.
Kemper is a diversified insurance holding company, provides property and casualty and life and health insurance in the US. Formerly known as Unitrin Inc, it changed its name in August 2011. Founded in 1990, it is headquartered in Chicago, Illinois.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 12, 2017|
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