Conseco Inc. in February agreed to pay some shareholders $120 million to settle a class-action lawsuit charging that the Carmel, Ind.-based insurer published false financial results.Conseco, which did not admit any fault, is suing its insurers to establish who pays the cost of the settlement. The carrier is compensating investors who bought Conseco's shares between April 1999 and April 2000. During that period, the value of Conseco's shares fell to about $6 from around $30 over concerns that was inflating its earnings with "gain on sale'' accounting practices, booking profits on loan sales before they were earned.
Conseco restated its 1999 results in 2000 when it abandoned "gain on sale" accounting.
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