Direct General Corp.

Nashville, TN: (Mar-04-07) A consolidated class action lawsuit pending in the United States District Court for the Middle District of Tennessee, Nashville Division, against Direct General Corporation was settled when Direct General entered into a Memorandum of Understanding with other defendants and the plaintiffs. The class action claimed Direct General and certain of its directors and current and former officers made false and misleading statements with respect to liabilities that had been recorded for unpaid losses and loss adjustment expenses. The settlement reached will see Direct General pay $14.94 million, which would be apportioned to the defendants, and the plaintiffs in turn, would agree to dismiss with prejudice all claims against all defendants to the action. [LAW FUEL: DIRECT GENERAL SETTLEMENT]