AMS Settles Insurer Suit

AMS Settles Insurer Suit

American Management Systems Inc. will get $43 million from National Union Fire Insurance Co. as part of a settlement of a lawsuit AMS filed in the aftermath of its litigation with the state of Mississippi.

AMS, which lost a civil trial and settled with Mississippi for $185 million, blamed its insurance company, National Union, for not allowing the Fairfax, Va., company to settle before the trial. AMS and Mississippi clashed over who was to blame for a failed tax system.

AMS was joined its suit against National Union by its other insurance company, Federal Insurance Co. of Warren, N.J., but all of the settlement goes to AMS.

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