Jackson National Reaches Class Action Settlement Over Hidden Fees

Jackson National Life Insurance Co. has agreed to pay up to $25 million class action lawsuit settlement to resolve allegations it hid fees from senior citizen customers.

In a motion filed June 21, 2013, both parties asked the court to preliminarily approve the class action settlement, which will end “intense, lengthy negotiations” and provide “substantial economic relief” to more than 44,000 California consumers who purchased fixed deferred annuity products issued by Jackson National Life Insurance Co.

The proposed class action settlement will resolve allegations that Jackson National engaged in a scheme to target senior customers and defraud them by hiding fees when selling its deferred annuities, including commissions and high surrender fees – a penalty charged for making an early withdrawal above the free withdrawal amount.

Under the terms of the proposed settlement, Jackson National will make cash payments or account credits equal to 22 percent of any past surrender charges policyholders incurred. Jackson will also reduce any future surrender charges by 22 percent. These benefits will be made automatically; there will be no claims process, and Class Members are not required to do anything to receive the full settlement benefit, according to the motion.

The proposed class includes all California individuals who were age 60 years or older when they bought Jackson’s allegedly misleading deferred annuities between October 24, 2002, and January 12, 2012.

“The price of delay is particularly high in this litigation because a substantial portion of the class consists of elderly consumers who cannot wait years for relief,” the memorandum said. “Continuation of the litigation would be extremely expensive and risky.”

A hearing will be held August 1, 2013 to address the parties’ request to preliminarily approve the Jackson National class action settlement and conditionally certify the proposed Class.

The Jackson National Life Insurance Class Action Lawsuit case is Nancy Meadows et al. v. Jackson National Life Insurance Co., Case No. 12-cv-01380, in the U.S. District Court for the Northern District of California.

The plaintiffs are represented by Howard D. Finkelstein, Jeffrey R. Krinsk, Mark L. Knutson and C. Michael Plavi II of Finkelstein & Krinsk LLP, Ingrid M. Evans of the Evans Law Firm, Andrew S. Friedman, Patricia Syverson and Kimberly Page of Bonnett Fairbourn Friedman & Balint PC, Theodore J. Pintar and Steven M. Jodlowski of Robbins Geller Rudman & Dowd LLP, and Stephen R. Basser of Barrack Rodos & Bacine.

Help for Victims of Senior Financial Scams

If you or a loved one were told that a life insurance policy or annuity was an appropriate investment and it did not turn out as promised, you may be able to take legal action against the financial institution, bank or insurance company that sold the policy. Filing an individual lawsuit or joining a class action lawsuit may be the only way to recover money that was lost – and more. Learn more and obtain a free case evaluation at the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation.