Midland National Agrees to $31M Annuity Class Action Settlement

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A $31 million annuity fraud class action lawsuit settlement with Midland National Life Insurance Co. has received preliminary approval in California federal court.

Plaintiffs Rosalie Vaccarino and David Lee Tegen allege that they, along with other Midland annuity buyers, were deceived into buying annuity products with false promises and marketing.

History of Midland Annuity Fraud Litigation

Vaccarino and Tegen filed the original annuity fraud lawsuit against Midland on June 17, 2011. According to the life insurance annuity lawsuit, the plaintiffs allege that “Midland made misrepresentations of ‘bonuses’ and ‘growth’ with respect to its products but failed to disclose that it shifted the cost of the bonuses and high sales commissions back to purchasers through lower interest and index credits over time.” Vaccarino, Tegan, and other Class Members alleged in the annuity class action lawsuit that they were made to believe that they were receiving a premium deal on an annuity product that would eventually yield them a profit.

Annuity life insurance products usually require that an individual pay a single premium up front that will later be redistributed in increments over the remainder of the buyer’s life or a set period time. Midland made its annuity products seem especially appealing to customers under the age of 64 who were seeking a secure source of income after retirement.

However, the promised growth and bonuses were not what Midland had promised, according to the retirement annuity lawsuit. Instead of increasing the principal investment of the annuity holder, “growths” and “bonuses” instead drained money over time.

The annuity lawsuit accuses Midland of violating of California’s Unfair Competition Law, fraud, breach of contract, and breach of good faith and fair dealing. Midland has denied the allegations. The insurance company has said it fairly represented its products and that all annuity holders were informed of the charges and interest adjustments associated with Midland annuity insurance.

After two years of litigation, Midland agreed to settle the annuity fraud lawsuit and pay $31 million to Class Members who bought any of seven qualifying Midland annuity products. A formula will be used, based on Class Members’ age at the time they bought the annuity and how long they held the investment, to determine the payout. No claim form is necessary.

Join a Free Annuity Fraud/Life Insurance Class Action Lawsuit Investigation

If you or your loved were told that a life insurance policy or annuity was an appropriate investment and it did not turn out as promised, you may need to have an investment fraud lawyer review the policy, the payments and the potential benefits. You may be surprised at what they find, and you may even qualify for financial compensation beyond what the policy promised.

Submit your information to a skilled investment fraud lawyer for a free review of your case. You will not be charged, and any consultation is free. Submit your information now!

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