Robinson said it settled the lawsuit for $4.25 million and expects to take an after-tax charge against its fourth quarter earnings to cover that expense. The Minneapolis-based logistics firm said its is also planning to sue two of its insurance carriers, alleging wrongful conduct in the defense and settlement of the case and demanding reimbursement of the $4.25 million payment.
However, C.H. Robinson noted that its main insurance provider has agreed to cover the cost of any potential judgement in the remaining two cases, provided the trials do not find that direct actions of C.H. Robinson employees involved conscious disregard for the safety of others.
CFO Chad Lindbloom said that C.H. Robinson continues to maintain it was not at fault in the accident, but settled rather than "risk potentially higher jury awards."
