Pacific Life Insurance Company Hit With Class Action Lawsuit Over Deferred Annuities Sales-Update on Prior Lawsuits

ATTORNEY NEWSLETTER

Pacific Life Insurance Company was the target of a class action lawsuit related to sales of deferred annuities.  The 2005 lawsuit alleged that Pacific Life Insurance Company and its salespeople committed securities fraud because they failed to disclose that tax deferral advantages of its annuities products might be superfluous in qualified retirement plans because the retirement plans themselves are already tax deferred savings vehicles.  A major issue of contention was whether or not the broker dealers that sold the products had the responsibility to disclose the tax deferral duplication to prospective clients. Annuities fraud attorneys warn senior citizens that purchasing deferred annuities at an advanced age may not be in the best interest of seniors.

The lawsuit against Pacific Life Insurance Company also alleged that the company targeted rollover IRAs, for which annuities are not appropriate.  It was alleged that this was done because brokers selling the financial products earned higher fees and Pacific Life Insurance Company collected surrender charges.