September 8, 2008 Insurance companies settle RI nightclub fire suits

PROVIDENCE, R.I. (AP) - Seven insurance inspection companies sued after a fire at a Rhode Island nightclub killed 100 people have agreed to pay $262,500 to survivors and victims' relatives.

The settlement offer was revealed in court papers Monday. The companies were accused in the lawsuits of failing to thoroughly inspect The Station nightclub before issuing insurance policies to its owners.

It's the third settlement in the last week stemming from the February 2003 fire in West Warwick, which began when a rock band's pyrotechnics ignited cheap packaging foam used as soundproofing.

More than $176 million has now been offered by the dozens of people and companies sued after the fire.

All the settlements require the approval of the more than 300 people suing, as well as a judge overseeing the case.

(Copyright 2008 by The Associated Press. All Rights Reserved.)