ARM Financial Group Inc.

Investors filed a class action lawsuit against the company after losing money on the company's stock after ARM officials filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in late 1999. The lawsuit claimed investors were misled about the financial stability of ARM, a publicly traded financial services company. Plaintiff representatives have proposed a $3 million settlement with the remaining defendants in the case, all of which are affiliates of investment firm Morgan Stanley. (May-16-06) [SAN ANTONIO BUSINESS JOURNAL]