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Liberty Mutual loses bid to deny pension funds to former CEO



Liberty Mutual Insurance Co. must pay $ 1.27 million in retirement benefits to a former executive who left the company to join a rival, a federal court judge rolled Sunday proclaimed the Boston-based insurer for a "lack of joy" and "fraud." [19659002] David Cohen, former president of the United States and global crime officer in Liberty International Underwriters, worked at Liberty Mutual from 1999 to 2015 and participated in various companies' employment-based retirement plans, according to the court records of David Cohen v Liberty Mutual Group Inc. Executive Partnership Delay Compensation Plan, held in the US District Court for Southern District of New York .

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5, Liberty Mutual planned to do Mr. Cohen was redundant, unknown to him, but three days before he intended to terminate his employment, he resigned and moved to Bermuda-based Aspen Insurance Holdings Ltd. according to

About the same time, several other Liberty emancipated recipients and began working in Aspen, court documents say.

After leaving reclassified Liberty Mutual Mr. Coh's resignation from voluntary resignation to "dismissal for cause" and informed him that he was consequently denied benefits under the plans, the court said.

In his opinion, Judge Vernon S. Broderick said the dual role played by Liberty Mutual as both the manager of the ERISA benefits and the executive remuneration plans and which the fund-raising entity creates "a classic conflict of interest".

Liberty Mutual's "pattern of lack of goodness – which mainly constitutes fraud by not disclosing essential information -Intoward Speech indicates that the conflict of interest may have affected the benefits of decision making," Judge Broderick says in his opinion.

The insurer also had intention to minus Mr. Coh's employment "without cause" on October 15, 2015, before Cohen announced on October 12, 2015, noted that view.

"This apparent conclusion that there was no reason to terminate the plaintiff's employment for the cause is inconsistent with Liberty Mutual on December 23, 2015, deciding after the plaintiff had already voluntarily resigned – that his resignation should be reclassified as a cause of dismissal, "the verdict wrote. Aspen employees employed by any alleged punishment The fee claims that the affiants were not "recruited or urged by [Plaintiff] to leave [their] employment with [Liberty Mutual]", "according to the opinion.

Judge Broderick granted Cohen's draft summary judgment and instructed Liberty Mutual to pay the benefits according to the terms of the plans.

"We do not comment on issues or litigation," said a Liberty Mutual spokesman.

                    


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