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!
Oops! We could not locate your form.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2025 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
5 thoughts onMidland National Agrees to $31M Annuity Class Action Settlement
My Flexible Deferred Annuity-MNL Capstone 14 has proven a poor vehicle in which to save for retirement. I took it out in 2010.
Yes, I feel I was tricked and totally misled about my MNL Retire Vantage 10 annuity. I purchased the annuity 2 years ago. The stock market has had excellent returns of 25% each year. I have virtually received about 1.5 and 2.5 percent in each of those two years. I understood that my annuity was low risk, but the performance comparisons they gave me for most recent, highest, and lowest 10 years terms would never come anywhere close to the lowest term they indicate on a document they gave me. With 299k the 1st year, I ended up with 301. The second year I ended up with 314k. The lowest projected amount they projected after 10 years was 625k. I would have been satisfied with 450-475k. With 8 years left and medium to low stock market growth years to come, my annuity probably would never reach 360k. I have other evidence that they have lied to me over and over again. I have sent numerous emails to my agent and Midland because I want out. But, the surrender fees are horrendous. I feel that there are hidden fees and caps that aren’t stated in my annuity.
Chris Quirarte, my agent, in Playa Del Rey has repeatedly lied to me. It’s incredibly crazy that school districts let these scammers come into school and make at least 97% profit from customers money invested. It’s shameful!
I believe Midland National Life is very dishonest and sneaky. I have been frustrated beyond my capacity in dealing with them since 2014 on an old UL policy.
I believe Midland national Life insurance company are being dishonest,& are fabricating information,in order not 🚫 to pay out on my policy details in equity.
I agree I started with them when I was 19/20 I am now 50 and it was told to me that it would build equity to assist when I retired but now it shows no equity and I am paying for free rider policy connected to my child under 18. They were bought out without my consent and basically paying for nothing because no equity being saved.