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Prudential Insurance Co. of America has agreed to pay $39.2 million to settle a class action lawsuit alleging it failed to pay death benefits to military service members, veterans and family members under a group life insurance policy in a lump sum as required by federal law.
The life insurance class action lawsuit alleged that, instead of paying death benefits on the Servicemembers Group Life Insurance (SGLI) and/or Veterans Group Life Insurance (VGLI) policies in a lump sum, Prudential settled those benefits through the establishment of an interest-bearing retained asset account for each beneficiary. The plaintiffs alleged that the use of these “Alliance Accounts” violated federal law and amounted to a breach of contract.
Prudential has denied the allegations, but agreed to settle the class action lawsuit to avoid the expense and uncertainty of ongoing litigation. On Tuesday, U.S. District Judge Michael A. Ponsor granted preliminary approval to the Prudential class action settlement, finding that the agreement “was entered into at arm’s length by experienced counsel for the parties and only after extensive negotiations.” He found the terms of the Prudential life insurance settlement are “sufficiently within the range of reasonableness” and thus worthy of preliminary approval.
Class Members of the Prudential class action settlement include: “All individuals (a) who were beneficiaries of the group life insurance contract between the Department of Veterans Affairs and the Prudential Life Insurance Company of America for [SGLI] … and/or [VGLI], (b) who made claims (or on whose behalf claims were made) for lump sum benefits prior to November 2010, and (c) whose claims were settled by Prudential through the use of an Alliance Account.”
Under the terms of the class action settlement, Prudential has agreed to pay $125 per Class Member. No Claim Form is required for Class Members to receive payment from the Prudential class action settlement. In addition, Prudential has agreed to make substantial charitable donations to organizations supporting veterans over the five years following the entry of final judgment.
The Prudential class action settlement will resolve all of the consolidated cases in the multidistrict litigation known as In re: Prudential Insurance Co. of America SGLI/VGLI Contract Litigation. According to court documents, there are approximately 67,000 potential Class Members who may be eligible for benefits from the Prudential class action settlement. A hearing on final approval of the Prudential life insurance settlement has been scheduled for Dec. 8, 2014.
More information about the Prudential military service death benefits settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.
The plaintiffs are represented by Daniel D. King of the Daniel King Law Firm PLLC, Michael von Loewenfeldt of Kerr & Wagstaffe LLP and Christopher M. Burke of Scott & Scott Attorneys at Law LLP.
The Prudential Military Service Death Benefits Class Action Lawsuit is In re: Prudential Insurance Co. of America SGLI/VGLI Contract Litigation, Case No. 3:11-md-02208, in the U.S. District Court for the District of Massachusetts.
UPDATE: On Nov. 7, 2014, the plaintiffs asked U.S. District Judge Michael A. Ponsor to grant final approval for the Prudential military death benefits class action settlement.
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10 thoughts onPrudential Settles Military Death Benefits Class Action Lawsuit
Prudential Insurance Company is the worst insurer ever! I remember back in the day when they first recruited me, how proud I was to come on board. 33 years into the insurance industry, and I am glad I never went to work for them. I remember seeing my Agent’s business card with all his licensing designations (how smart I thought you had to be) and when he came head hunting me to go work for Prudential, I am glad I never made the cut. It is amazing what you learn in life, and fortunately once stupidly thinking how Prestigeous Prudential was is exactly what they never were. I worked for every third-rate insurer out there and they all are crooks, looking back the whole industry is why I believe my life went to pot. Corrupt thieves the whole lot of them. They can slit your throat once you are vested in the product since you can’t leave to go elsewhere. It doesn’t surprise me that people do horrific things when subjected to endless debauchery at the hands of blatant greedy, unscrupulous Corporations who have nothing but distain for all the peasants. You Suck Prudential. GFY-elf!
Prudential is currently screwing me over. I’m a 100 percent disabled Veteran who served my country for 30 years as a Full Bird Colonel. My dedication to serving my community compelled me to engage in every community activity Prudential endorse, to spread the Prudential “Good Will” and “Mission” throughout the local community. In reality I was used as a military ploy to foster confidence and trust of a company as far from trustworthy as any opponent ever confronted with during any of my deployments. With stellar evaluations and being Just 6 months from my 3 year Mark to being vested with the company, I get a 7 second phone call by a senior VP to tell me my job has been eliminated as she hurriedly transfers me to Human Resources before any questions. Additionally of the 27 positions with equal job titles I was the only one eliminated AND THE OLDEST OF THE BUNCH. WHAT REGARD DOES PRUDENTIAL HAVE FOR THOSE WHO SERVE? Absolutely NONE!! Any similar stories to share?
got to love those 39 million settlements with denial of all allegations… prudential has screwed people many times over… wouldn’t touch one of their products!
I got the check but since I live in the Philippines already, i forgot to encash it. I was just browsing thru my stuffs yesterday and I saw that expired unencashed check dated 1/29.2015. How can I be re-issued with a replacement check? Thanks
I received a letter regarding my settlement on this lawsuit but never received anything else how do I claim my check
I received a letter about this but was never contacted but would like for someone to contact me about this letter thank you
What number can I call to receive a check. We had three beneficiaries and only got two checks in the family. I called sgli and prudential but noone can seem to lead me in the correct direction.
I got a 125.00 check but I do not want to be part of this… How can I get my name out of this lawsuit and return the check.
Why would you not accept the check? Prudential’s practices were in violation of their contract and were court ordered to pay each class member. Cash it and move on.
UPDATE: On Nov. 7, 2014, the plaintiffs asked U.S. District Judge Michael A. Ponsor to grant final approval for the Prudential military death benefits class action settlement.