Mississippi Shipbuilder, Insurer Settle on $180M for Katrina Damages

Huntington Ingalls Industries and its insurer have reached cash settlement for $180 million for the shipbuilder’s losses from Hurricane Katrina in 2005 at facilities in Pascagoula and Avondale, La. The Mississippi Press reported that the information was contained in a filing this week with the Securities and Exchange Commission.On Sept. 6, the company reached a settlement with FM Global, agreeing to release its claims in exchange for a cash payment of $180 million, according to the filing. According to a quarterly report filed with the SEC on Aug. 7, the trial against FM Global was due to start in October in U.S. District Court for the Central District of California. “The terms of the settlement agreement are confidential and the company does not anticipated making further public comments regarding the settlement agreement,” the filing stated. The filing noted that Ingalls filed a lawsuit against Aon, the company’s broker in connection to the policy with FM Global, seeking damages for breach of contract, professional negligence and negligent misrepresentation, as well as declaratory relief. The company “waived no rights against Aon in the settlement with FM Global and intends to continue pursuing its claims against Aon,” the filing stated.