MetLife Inc. is paying $50 million to settle two class-action lawsuits based on its conversion from a mutual to a publicly traded stock company nearly a decade ago.

In a statement about the demutualization suits, MetLife, the largest U.S. life insurer, said it's "pleased to put these matters behind us, and we believe that the settlement is in the best interest of the company and its policyholders and shareholders."

The courts will determine what portion of the $50 million will be paid to class counsel for their fees and expenses, MetLife (NYSE: MET) said.

A spokeswoman for the New York-based MetLife said the company didn't wish to provide additional comment beyond its statement.

According to a notice of class-action settlement posted on the docket of the suits by the U.S. District Court for the Eastern District of New York, the settlement would cover people who owned one or more policies issued by Metropolitan Life Insurance Co. on Sept. 28, 1999.

The two suits -- one in New York state Supreme Court and the other in the New York federal court -- were filed against MetLife and MetLife Inc., alleging claims related to the demutualization of Metropolitan Life in April 2000, the notice says.

Both suits alleged that to win the policyholders' vote to demutualize, the companies sent an information package to policyholders that contained false statements and omitted material facts, the notice says. Both suits said policyholders were damaged as a result of the alleged misstatements or omissions.

In the statement, MetLife said its demutualization in 2000 "greatly benefited" its more than 11 million policyholders and led to the financial strength it has today.

"We continue to believe that MetLife had strong defenses to the claims, but we settled the matter to end what had been almost a decade of litigation," the company said.

In 2000, BestWire reported that MetLife Inc. said it raised $4.43 billion through its combination of stock and equity offerings when the life insurer converted to a publicly owned company (BestWire, April 10, 2000).

The new holding company, MetLife Inc., sold 202 million shares for $14.25 a share, raising $2.735 billion in its initial public offering. It raised another $840 million in the sale of 17.5 million equity security units. It also raised $855 million through a private stock placement with Banco Santander Central Hispano S.A. and Credit Suisse Group (BestWire, April 10, 2000).

MetLife closed its IPO on April 7, 2000.

New York insurance regulators approved Metropolitan Life's plan to convert from a mutual to a stock-owned company.

Metropolitan Life Insurance Co. currently has a Best's Financial Strength Rating of A+ (Superior).

MetLife stock closed at $33.90 a share on Nov. 20, down 0.88% from the previous close.