Former SCPIE board member says CEO made false claims about offers for the company

By Lisa Kerner

Charlotte, N.C., Oct. 19 - Recently resigned SCPIE Holdings Inc. director Joseph Stilwell claims chief executive officer Donald Zuk made "false and misleading statements" during a conference call on Wednesday. The call concerned the proposed $28-per-share acquisition of SCPIE by the Doctors Co.

Stilwell, with an 8.97% stake in SCPIE, made his assertions in a letter to board chairman Mitchell S. Karlan. The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Stilwell is asking SCPIE to "immediately issue a press release correcting these statements and make appropriate public filings to correct the record."

The investor was a board member on Tuesday when the merger was approved.

According to Stilwell, Zuk denied that the company had received an offer in excess of $28 per share. However, Stilwell believes there were superior offers that included a stock component and that the board valued the non-cash offers differently.

It was previously reported that the offer by Doctors Co. is valued at about $281 million.

Los Angeles-based SCPIE provides health-care liability insurance for physicians and other health-care providers, medical groups and health-care facilities.

The Doctors Co. is a physician-owned medical malpractice insurer located in Las Vegas.

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