Chris Proffitt/Eyewitness News
Hamilton County - The long, bitter, and public legal battle between Conseco founder Stephen Hilbert and his former company is over. Hilbert agreed to settle a nearly $250 million suit stemming from loans he took out from the company as its CEO in the 1990s. It is a major victory for the Carmel-based insurance company.
The settlement is an abrupt about-face for Hilbert who, outside a Hamilton County court on Friday, bitterly complained about the tactics his former company used against him and his wife in its nearly $250 million lawsuit.
"Certainly they've done everything they can to try to tarnish our reputation and affect the way we can go about our lives going forward," Hilbert said.
But on Wednesday, after a marathon session of negotiations among attorneys for both sides that lasted through the night, Hilbert agreed to settle the bitter and very public three-year-old lawsuit.
"They're ecstatic and I'm happy for them. They're pleased with the terms of the settlement and beyond that, they have the ability to focus 100 percent of their attention on the future rather than the past and having the ability to do so is priceless," said Phillip Fowler, Hilbert's attorney.
The confidential settlement is the end of what has been a public feud between Conseco and its founder. Once one of the highest paid executives in the nation, Hilbert said he lost his fortune when Conseco declared bankruptcy after his departure as chairman.
Attorneys said the settlement resolves nearly $250 million in debt and interest Hilbert owed on company-backed loans he used in the 1990s to buy Conseco stock.
"The lawsuits in Hamilton county and the other suits pending between Steve and Tomisue Hilbert will be resolved and dismissed," said Ryan Leitch, Conseco attorney.
The settlement also spares the Hilberts from a public accounting of their finances. The former CEO spent hours in court last week testifying about the assets he has available to pay his debts to the company.
The Hilbert's $25 million Carmel mansion became a symbol in this legal battle. Conseco took possession of the property a year ago. The property was scheduled to go to a sheriff's auction later this month. A Conseco attorney says he hopes Wednesday's settlement won't make that necessary.
Conseco has entered into similar settlements with several members of the so-called "big eleven," former company directors that also defaulted out loans they took out with the company to buy stock. Four suits are still pending against former directors and two are in bankruptcy court.
