SEATTLE – A Federal judge has ruled in favor of consumers in a case alleging that the North American Company for Life and Health (NACOLAH) violated federal racketeering laws by misleading customers of its indexed annuity products.

Federal judge John A. Jarvey has rejected NACOLAH's attempt to dismiss each of the claims in the case, allowing the litigation to move forward.

"We are pleased with the Court's ruling and look forward to proving our claims as the litigation moves forward," said Hagens Berman managing partner Steve Berman. "We believe that North American orchestrated a scheme to bilk investors, including many seniors, out of thousands of dollars by misleading them on the manner in which their money would be invested."

The lawsuit was originally filed May 25, 2011, in the United States District Court for the Northern District of Illinois but was later transferred to the Southern District of Iowa. The suit claims that NACOLAH failed to disclose to its investors that before any of their funds are invested a sales commission, sometimes exceeding 15 percent, is deducted from their account.

The lawsuit also claims that NACOLAH promises a premium bonus percentage to entice investors to purchase the annuities, but that bonus is not actually added to the premium.

The judge's decision means that the case will move forward toward discovery and a trial.

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in nine cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List seven times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at@ClassActionLaw.

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Ashley Klann
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