ING Hit With Annuities Fraud Class Action Lawsuit

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ING Hit With Annuities Fraud Class Action Lawsuit 

By John Curran

Ernest Abbit of California has filed an annuities fraud class action lawsuit against financial services firm ING, alleging that indexed financial instruments failed to meet the advertised goals and that company officials failed to properly advise seniors of the risks.

The stated goal of ING indexed annuities, according to statements cited in the class action lawsuit, is to provide seniors in various age groups “protection of principal”, i.e. minimizing risks of investment while still using various investments aimed at “fueling the value of our annuity” “to build up your retirement savings.” However, the actions of the company failed to back that up, Abbit alleges.

His annuities fraud lawsuit termed the financial instruments “wolves-in-sheep’s clothing” because allegedly “opaque” statements failed to regarding performance masked both poor returns on investment as well as the use of “embedded derivatives” similar to those that led to the 2008 recession. ING indexed annuities were structured, allegedly, so that the company would benefit from any derivatives income while putting seniors at risk for any potential losses.

The Financial Industry Regulatory Authority, which is governed by the financial services themselves and operates as a private monitor, warned in 2005 that the products used by Abbit and others often is accompanied by sales material that “do not fully describe the features and risks of the products.”

The California man has allegedly lost, along with the purported class as a whole, up to 20 percent of their savings “on the first day” because of the lack of knowledge regarding what the product provided. His returns reportedly are a fraction of those an investor would have received by investing in the S&P 500 as a whole, the index his annuity was designed to mirror.

The ING Annuity Class Action Lawsuit is Ernest O. Abbit, et al. v. ING USA Annuity and Life Insurance Company, Case No. 13-cv-2310, U.S. District Court, Southern District of California.

Older men and women may be victims of fraud by financial services firms or advisors that try to sell them products that include unexplained or fiscally detrimental features. If you or someone you know think that you have seen investments or retirement funds plummet in value as a result of wrongdoing, learn about your legal options. Start with finding out if you are eligible to pursue damages from the firm who sold you the product with a free consultation with an annuities fraud lawsuit attorney. One is available to those who fill out the form at the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation.

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