NASHVILLE, Tenn. - Restaurant chain Cracker Barrel Old Country Stores Inc. is suing two of its insurance carriers, claiming they did not reimburse the company after it settled sexual and racial harassment claims for $2 million.

The lawsuit filed last week in U.S. District Court in Nashville alleges Cincinnati Insurance Co. and Houston Casualty Co. violated contracts with Cracker Barrel.

Women who worked at three Cracker Barrel restaurants in Illinois filed a federal lawsuit against the company in 2004 claiming sexual harassment and racial discrimination by employees and managers.

The U.S. Equal Employment Opportunity Commission joined the women as plaintiffs in the lawsuit, which alleged the women were groped by male employees, subjected to obscene and racist jokes and shown pornographic pictures at the restaurants. The women said bosses laughed at them when they complained.

Cracker Barrel says it requested last March that the insurance companies settle the lawsuit for $2 million, but the insurers say that they weren't obligated to do so under policies signed with Cracker Barrel.

"Most if not all of these claims do not fall within the coverage period of the policy," said Joan Shevchik, spokeswoman for Cincinnati Insurance, "We are reviewing this matter with our attorneys and will file a formal response in due course."

Cracker Barrel has in the past faced lawsuits and federal inquiries over complaints of refusing to serve black customers, discriminating against minority workers and firing gay employees. The company has taken steps to rebuild its folksy image and reach out to minorities.

Cracker Barrel in 2004 agreed to pay $8.7 million to settle federal lawsuits in Georgia that alleged black customers were subjected to racial slurs, denied service or segregated in smoking sections.

The company also settled a Justice Department lawsuit the same year with similar claims by agreeing to a number of operational changes but without admitting wrongdoing or paying penalties.

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