St. Paul Travelers Securities Litigation

On November 10, 2004, Zimmerman Reed filed a securities class action lawsuit on behalf of St. Paul Travelers (NYSE: STA) shareholders who purchased or acquired shares during the period from January 27, 2000 through October 22, 2004 (“Class Period”). The action was filed in the United States District Court for the District of Minnesota, alleging St. Paul Travelers and certain of its officers and directors disseminated materially false and misleading statements and/or concealed material adverse facts. Specifically, St. Paul Travelers inflated its earnings during the Class Period by utilizing an unsustainable business practice whereby the company designed and executed a business plan under which it agreed to pay bribes or kick-backs, known as "contingent commissions" in return for insurance brokers steering them business and shielding them from competition. Defendants' materially false and misleading statements caused individuals to purchase STA securities at artificially inflated prices.