Tuesday's Financial Winners & Losers

Conseco(CNO Quote) rose on Tuesday after the insurer said it had reached a settlement in a class-action lawsuit involving its life insurance division. The tentative settlement will result in an additional $100.3 million expense in the just-ended quarter.

The lawsuit suit stemmed from past business practices of companies Conseco had acquired through mergers. The settlement must still be approved by the court.

The Indiana-based firm also said a previously announced settlement with the Internal Revenue Service has been finalized. The deal with the IRS will require Conseco to reduce the valuation allowance on its deferred income tax assets by about $260 million. The change in the valuation will not affect the company's net income. Shares gained 36 cents, or 1.58%, to $23.16 recently.

Capital One (COF Quote) gained after the McLean, Va.-based credit card company was upgraded by a Morgan Stanley analyst. The Wall Street investment firm raised its rating on the company to overweight from equal-weight. Capital One was trading up $1.22, or 1.58%, to $78.57 recently. ...