Terminix offers $87 million settlement in USVI case

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August 1, 2016

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August 1, 2016


Terminix_7739_White-5306174633911According to parent company ServiceMaster Global Holdings’ second-quarter 2016 financial press release, there has been update to Terminix’s 2015 fumigation accident in the U.S. Virgin Islands: (For reference, see our March 30 coverage here.)

On July 21, 2016, the company entered into a superseding plea agreement in connection with the investigation initiated by the United States Department of Justice related to the U.S. Virgin Islands matter. Under the terms of the superseding plea agreement we have agreed to pay fines, community service and government costs up to $10 million (same aggregate amount as previously disclosed) as recommended by the parties, but have agreed to monetary ranges for the fines and community service, giving the court discretion at sentencing. The superseding plea agreement is subject to the approval of the court at a hearing scheduled for August 25, 2016 and, if approved will resolve the federal criminal consequences associated with the [U.S. Department of Justice, or DOJ] investigation.

The company is also reporting that it has reached a tentative settlement agreement to settle all civil claims of the affected family related to the U.S. Virgin Islands matter. We expect that, under the terms of the proposed settlement agreement, in addition to the amounts that the company’s insurance carriers have agreed to pay to the family pursuant to our general liability insurance policies, we will pay $87 million. The company had previously paid $3 million related to these claims.

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