Hagens Berman Sobol Shapiro filed a class-action lawsuit against EquiTrust Life Insurance Company, claiming it duped customers into purchasing annuities products through deceptive sales practices.
The lawsuit claims EquiTrust falsely promises a 10% of premium bonus and fails to disclose that its surrender charges exceed those permitted by standard nonforfeiture law.
The lawsuit claims the "scheme was devised and intentionally crafted to ensure that plaintiffs and class members would purchase indexed annuities and not receive full benefits from the annuities or be subject to exorbitant surrender charges."
The increased surrender penalties and extended maturity dates on the annuity products don't end until plaintiffs' 105th birthday, forcing them to pay surrender charges of 20 percent, the suit claims.
Plaintiffs say the class has been forced to pay hundreds of millions of dollars in premiums and surrender charges for annuity products that, by design, could not perform as advertised.
On March 19, 2011, the district court held a hearing on plaintiffs’ motion for class certification and defendant’s motion for summary judgment. In September, the court granted Equitrust's motion. It is now on appeal.
If you purchased an indexed annuity product from EquiTrust from 2004 until present, you may be eligible to join this suit. You can contact attorneys by calling (206) 623-7292.
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