PHOENIX — For a second time, Arthur Andersen has reached a $217 million settlement with investors who lost $570 million in the Baptist Foundation of Arizona’s 1999 collapse. The agreement was announced May 6, on the sixth day of a civil trial against Andersen.
After attorneys’ fees, 13,000 former BFA investors are expected to recoup about $175 million in losses.
Andersen provided an $11.32 million check to the Arizona attorney general May 6; the agreement calls for an insurance company owned by Andersen and its worldwide affiliates to make a $205.68 million payment by June 4. If, however, the insurance obligation cannot be met, Andersen itself agreed to a nonappealable payment schedule of $10 million on June 14, June 15, Aug. 15, Sept. 13 and Oct. 15 and $155.68 million on Oct. 25.
The Andersen settlement will provide BFA investors 30 cents on each dollar lost, The Arizona Republic reported; it is possible investors ultimately could recoup 72 cents on the dollar from the Andersen settlement as well as sales of BFA assets and a settlement with the BFA’s former law firm.
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