N Brown to pay 49.5 million pounds after settling legal dispute

Fashion conglomerate N Brown Group has said it has agreed to pay Allianz Insurance 49.5 million pounds, putting an end to their long-term legal dispute.

The claim was initially issued by the insurance firm in January 2020 against N Brown subsidiary JD Williams & Company (JDW).

Allianz launched the dispute in relation to significant amounts of redress paid to customers by JDW and the insurer in respect of certain historic insurance products, including payment protection insurance (PPI), a press release stated.

Up until 2015, JDW had sold general insurance policies to customers that had been underwritten by Allianz, however it was ruled that Allianz should be responsible for PPI complaints.

After paying out 27 million pounds to customers who were mis-sold PPI, Allianz made a decision to sue JDW, which in turn opted to counterclaim that Allainz was equally liable for further PPI claims before 2005.

N Brown said that under the settlement, which was made without admission of liability, JDW will pay the insurer below the sum of its initial claim, which had exceeded 70 million pounds.

The company noted in a regulatory filing that it had sufficient liquidity to meet the cash flow requirements of the settlement, with payment expected to be transacted before the end of January 2023.

It added: “The settlement removes a significant element of uncertainty and distraction for JDW and allows the company to focus on creating shareholder value through its core business activities as it continues its transformation.”