Three Major Annuity Fraud Lawsuits Reach Settlement Phase

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Several major firms have reached settlements in annuity lawsuits related to allegations of annuities fraud.

Annuities are a financial product where a person pays a set amount in order to later receive a payout at a later date.

Fraudulent annuities are cases when annuities brokers sell annuities with various hidden and exorbitant fees, or annuities with minimal payouts.

For example, an annuity may require a payment schedule that a consumer is unlikely to live to complete, or the early withdrawal penalty may be unreasonably high. These same charges, hidden fees and targeting of the elderly, have come up repeatedly in recent annuities fraud settlements.

Recently, three large annuity fraud class action lawsuits have reached settlements.

The first case, In Re: American Annuity Practices and Sales Litigation has been delayed. The Court initially approved the settlement, but the class members have filed an appeal. In this case, it was alleged that American Annuity committed annuities fraud.

Meanwhile, a California federal court has given preliminary approval to a settlement over similar allegations leveled against Jackson National Life Insurance. A settlement of $25 million was agreed upon. The settlement will be distributed between 44,000 Californians. Allegedly, the company often targeted elderly consumers and then hit them with hidden fees once they purchased the annuity.

In another major case, Midland National Annuities has agreed to a settlement over allegations of annuity fraud. In this case, it was alleged that Midland didn’t tell consumers buying into their annuities that it deferred some of the costs of the annuities back to the policyholders in the form of lower payouts from the annuity.

Group lawsuits like annuity fraud class action lawsuits offer several benefits. First, plaintiffs can pool the cost of their legal action. Additionally, group lawsuits help streamline the legal process by combining many potential individual cases into a single lawsuit.

Annuity fraud class action lawsuits are often the only way for the victims of annuity fraud to see their payouts realized. These annuity lawsuits allow the victims of annuity fraud to hold those who sold them fraudulent annuities responsible.

In many cases, the settlements are set aside for all of those affected by these settlements, in case individuals join the case after the fact. However, time limits are in place, and if you’ve been the victim of annuities fraud, you should act quickly.

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If you or your loved purchased a life insurance policy or annuity that did not turn out as promised, you may have a legal claim. Obtain a free case evaluation now.