Northrop Grumman Continues Fight With Insurer Over 401(k) Deal

Northrop Grumman Corp. asked the Ninth Circuit to reverse a court order forcing the defense giant to reimburse one of its insurers $5 million in connection with settlements tied to the company’s retirement plans.

The complicated case asks which party—Northrop, or one of its three fiduciary liability insurers—is responsible for covering a $16.8 million class action settlement involving the company’s 401(k) plan. Axis Reinsurance Co. paid $5 million toward the settlement after Northrop’s primary and secondary insurers exhausted their policy limits by covering an undisclosed settlement with the U.S. Labor Department that also involved the company’s retirement plans.

Axis sued ...